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Chicago Board of Trade corn futures fell sharply, pushing spot ethanol prices in Chicago and New York Harbor about 0.75 cents lower in early Monday trade. Physical ethanol at Argo was pegged at $1.45 per gallon, and NYH barge ethanol was assessed at $1.57 per gallon.
A trader attributed the move to corn weakness linked to South American rains and softer US wheat.
Ethanol prices follow corn costs, so lower corn futures reduce the input cost for ethanol plants and weigh on the value of DDGS co-product, a feed ingredient. The move is a routine follow-through rather than a new supply shock.
dtnpf.comGeorge OrwelMar 19, 2018Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
