The Argo ethanol market, a benchmark for US ethanol, hovered near a five-month high Thursday as strong barge loadings out of the Illinois terminal and expectations for seasonal maintenance supported prices, sources said. A source valued prompt Argo at $1.6050/gal Thursday morning after S&P Global Platts assessed Argo at $1.6020/gal Wednesday.
It is the product's highest level since late April.
Argo found support as it has seen a strong barge loading program in recent weeks. Argo is supplied by trucks and rail, so if barges load out of the terminal, stock levels typically fall as it cannot be resupplied as quickly as drawn down.
September also typically brings the beginning of fall maintenance. As output rates have been high over the past two weeks, turnarounds could provide some relief from the near-record production rates.
