The front-month New York Harbor ethanol market remained at a commanding premium to the front-month Chicago ethanol swap Tuesday as demand on the East Coast hub outpaced supply.
"I haven't heard of any new delay issues," said one source. "But New York Harbor still seems relatively tight."
S&P Global Platts assessed February New York Harbor barges at a 11.75-cent premium to the February Chicago ethanol swap Tuesday, unchanged from Monday. The premium had soared as snow and ice delayed delivery trains in late December and January. But the reason the premium has remained supported was the source of some discussion Tuesday. Exports were on the mind for several market participants, with a recent report showing stocks in New York Harbor have falling over the past week.
"It could be tied to barge or vessel moves between New York Harbor terminals plus moves to the Mid-Atlantic or Florida," said another source. "Or it could be tied to an export."
The US Energy Information Administration is due to release its weekly ethanol stock data on Wednesday but that data does not show stocks in New York Harbor, only along the entire East Coast.
A contango in the Chicago paper market over the past several weeks has also encouraged some buying with plans to store until prices rise. That may be leading some to send product East to New York Harbor until prices are more favorable to sell.
