Chicago Argo, USG ethanol markets fall to lowest levels since late September
Houston (Platts)--12Dec2012/622 pm EST/2322 GMT
Chicago Argo and US Gulf Coast ethanol markets Wednesday fell to their
lowest levels since late September on a combination of a well-supplied market
and another drop in corn futures, sources said.
Chicago Argo ethanol was assessed down 2.125 cents, or 0.9%, from
Tuesday to $2.3135/gallon, while the US Gulf Coast ethanol assessment slipped
2.75 cents to $2.3650/gal.
Specifically, Chicago Argo and US Gulf Coast ethanol assessments were on
a five-session slide to their lowest levels since September 27, when they
were at $2.2295/gal and $2.3270/gal, respectively.
Article continues below...
Request a free trial of: Polymerscan
Each week Polymerscan works diligently to provide useful and current coverage of the continuously changing, global plastic resin marketplace. With Polymerscan you will receive more than 200 price assessments that cover the regional and domestic markets in Asia, Europe, the Middle East, the United State and Latin America. Products on our radar screen include LDPE, LLDPE, HDPE, PP, PVC, PS and ABS.
The premium of US Gulf Coast ethanol to the Chicago Argo ethanol market
edged down 62 points to 5.15 cents/gal, the lowest premium since September
17, when it was at 4.2 cents/gal. Sources attributed the drop in the premium
to increasing length in the US Gulf Coast ethanol market.
US Gulf Coast stocks for the reporting week ended Friday increased for
the fourth week in a row as they jumped 497,000 barrels to 3.276 million
barrels, the highest level since June 1, when they were at 3.729 million
barrels, the EIA said Wednesday in its latest weekly report.
Regarding overall length in the US ethanol market, an ethanol broker
said that "we keep building" ethanol inventories in the US.
Total weekly US ethanol stocks in the reporting week that ended Friday
soared 687,000 barrels, or 3.6%, to 20.028 million barrels, the highest level
in more than six months, the EIA said Wednesday in its most recent weekly
Lower corn futures also had a role in weaker ethanol markets, sources
December corn futures settled down 3.25 cents/bushel to $7.21/bushel on
lower wheat futures, which competes with corn as use for animal feed, and
persistent concerns regarding weak corn export demand, analysts said.
The US Department of Agriculture's latest weekly export report, released
Thursday, showed a decline of 184,529 mt, or 78.1%, in current marketing year
corn net export sales to an eight-week low of 51,611 mt for the reporting
week ended November 29.
--Shameek Ghosh, email@example.com
--Edited by Valarie Jackson, firstname.lastname@example.org