Prices for Chicago Argo ethanol set a 2020 record on July 1, as a massive corn rally and a bullish stocks report sent values ballistic.
S&P Global Platts assessed benchmark Chicago Argo ethanol at $1.3705/gal, breaking the previous record of $1.3685/gal set on February 18. Argo ethanol rose 8.25 cents in the day.
Front-month corn jumped 9.75 cents to settle at $3.4825/bu, the highest settle since reaching $3.5475/bu on March 16.
Ethanol prices also received a push higher from the US Energy Information Administration's weekly production and stocks report. While production saw a modest rise, ethanol stocks fell 860,000 barrels to 20.164 million barrels, the lowest level since late January 2016.
The ethanol rally came despite continued low liquidity at the dominant US trading hub for ethanol. Sellers set offers high and refused to budge, forcing buyers to up the bids in order to trade.
"Offers seem to be thin out here altogether," a source said.
Liquidity has been falling at the hub as the US Army Corps of Engineers' Illinois River locks maintenance project approached. The project started on July 1.
