US ethanol markets in all regions Monday reached their highest price levels since the first week of December, according to Platts data, on a surge in feedstock corn futures, sources said.
"Ethanol in every market seemed to get quite a boost from corn today," an ethanol trader said.
July corn futures on the Chicago Board of Trade settled up 32 cents/bushel Monday to $7.7525/bushel on continued worries regarding the drought in the Midwest, the largest corn-producing region in the US, that could hinder corn crops that are currently in the crucial pollination phase, analysts said.
Platts assessments for Chicago Argo, Chicago Rule 11, New York Harbor and US Gulf Coast ethanol all moved up to their highest points since December 5, when they were at $2.4825/gal, $2.50/gal, $2.61/gal and $2.62/gal, respectively.
Chicago Argo ethanol was assessed up 10.55 cents/gal to $2.48/gal as the Chicago Rule 11 ethanol assessment increased 10 cents/gal to $2.4950/gal. New York Harbor ethanol assessments each rose 12 cents/gal to $2.5950/gal for both any-July and any-August delivery. US Gulf Coast ethanol was assessed up 12.25 cents/gal to $2.55/gal.
The US West Coast ethanol assessment posted gains for the 11th consecutive session as it moved up 4.25 cents/gal to $2.62/gal, the highest level since December 2, when it was at $2.78/gal, according to Platts data.
During the Platts Market on Close assessment process, Vitol sold 10,000 barrels of ethanol to Eco Energy on an ITT Argo basis for July 14-24 delivery, with 5,000 barrels sold at $2.4850/gal and the remaining 5,000 barrels sold at $2.48/gal.
