Short Squeeze Lifts Argo Spot Ethanol Prices to Record High
Spot ethanol prices traded sharply higher early Friday amid a continuing short squeeze, with a trade done for prompt delivered product at the Kinder Morgan-operated Argo terminal near Chicago at a new record high of $3.75 per gallon.
A source said another prompt Argo trade was done at $3.80 per gallon, though this couldn't be immediately confirmed. Still, Argo spot prices are now at the highest level on record, boosted by worries demand is running ahead of supply ahead of the summer, when blending is expected to increase. On the Chicago Board of Trade, April ethanol futures soared 13.1 cents to $3.148, a near eight-year spot high.
George Orwel can be reached at email@example.com.