Most US ethanol prices slid Tuesday to their lowest levels in more than four weeks as stalling buying interest combined with firming supplies, sources said.
The Chicago Argo ethanol assessment fell 11.5 cents to $2.6145/gallon, the lowest level since March 17. The front-month New York Harbor ethanol assessment for any-April delivery slid 10 cents to $2.53/gal, the lowest level since February 12.
The Chicago Argo assessment has plunged $1.1455, or 30.5%, since hitting $3.76/gal March 31, which was the highest level since 2006.
For the seventh time in the last eight sessions, more than half of the Platts US ethanol assessments lowered as a market-wide product selloff continued to march values lower in a hurry.
"This is bloodbath, round 8," one ethanol trader said, adding that prices were "just melting."
In the Platts Market On Close assessment window Tuesday, 45,000 barrels of ethanol traded on an ITT Argo basis for April 20-30 delivery, first, at $2.57/gal, and lastly at $2.54/gal. As all eight trades were gapped, they were not counted toward the assessment, and Argo was assessed right below the best offer at the conclusion of the window.
Prices across all regions have tumbled since hitting eight-year highs on April 1 as bearish production data and rebounding stockpiles have put significant downward pressure on values.
March production of corn-based ethanol in the US rose by 117.22 million gallons, or 11.3%, to 1.15 billion gallons, rebounding from an 11-month low, US Environmental Protection Agency data showed Monday.
US ethanol stocks for the week ended April 4 rose 532,000 barrels to 16.407 million barrels, Energy Information Administration data showed Wednesday.
Those stocks could approach 17 million barrels in the upcoming Wednesday report for the week that ended April 11, sources said, as imports continue to trickle in and production remains strong.
