New York Harbor ethanol's premium over the Chicago Argo market narrowed to 1 cent/gal Monday from 1.25 cents/gal Friday, with strong bids for Argo pushing up prices over the past several days.
The last time the difference between the two markets was this narrow was December 12, 2014, when it was just 5 points.
S&P Global Platts assessed New York Harbor barges for any-September delivery at $1.5550/gal while Argo was $1.5450/gal Monday.
Chicago Argo, a benchmark for physical US ethanol, hovered near a two-month high for much of last week as strong domestic and export demand supported prices. New York Harbor, on the other hand, continues to lack liquidity while holding abundant product.
As the price advantage of sending ethanol to New York Harbor disappears, fewer shipments are likely to flow into the East Coast market.