Chicago Rule 11 ethanol was at a 1-cent premium Tuesday to the Chicago Argo ethanol market, its highest premium in more than two months as sources said lower supply for railcars led to the higher premium.
Chicago Rule 11 ethanol was assessed Tuesday at $2.26/gal, while Chicago Argo ethanol was assessed at $2.25/gal.
Specifically, the premium was at its highest level since October 17, when it was at 1.95 cents/gal.
There "seems to be just a little more tightness in rail," said an ethanol trader when asked to explain the stronger premium of Chicago Rule 11 ethanol to Chicago Argo.
Chicago Rule 11 ethanol was heard traded before the Platts Market on Close assessment process at $2.2650/gal for this-week-shipment.
Chicago Argo ethanol transacted multiple times during the MOC process in a range of $2.2450-2.25/gal.
