HOUSTON (ICIS)--US fuel ethanol spot prices were assessed weaker on Wednesday, as corn prices fell.
However, price direction at the Argo hub in Chicago has been more volatile during the past few days.
A source said prices have been on the rise at Argo, as some market participants got caught short on supplies and had to buy up prompt barrels, causing prices to firm in the short term.
As a result, the spread between Argo and other regions narrowed significantly.
Meanwhile, corn futures were 10 cents lower week on week, as they settled at $4.94/bushel on Wednesday.
An analyst said profit-taking has weighed down corn prices, but recent weather patterns have some thinking this year’s yield won’t be as abundant as previously thought.
Prices in the Midwest were down to $2.68-2.70/gal from $2.71-2.73/gal. Chicago prices were down to $2.63-2.65/gal from $2.66-2.68/gal.
Southern California prices were down to $2.64-2.66/gal from $2.88-2.90/gal, while New York Harbor (NYH) prices were down to $2.58-2.60/gal from $2.79-2.81/gal.