Front-month New York Harbor ethanol slips to lowest level since March on oversupply


Front-month New York Harbor ethanol was assessed by S&P Global Platts at $1.50/gal Thursday, a 2 cents/gal decrease and the product's lowest level since March 23, when it was assessed at the same level.

An excess of supply has pressured prices in the region for over a month. Ethanol markets typically enter a seasonal backwardation in the summer as ethanol reaches peak demand.

But prompt barges have traded at as much as a 2-cent discount to second-month ones as an abundance of product in the region has drive trading interest lower.

Stocks in the region fell 354,000 barrels in the week that ended July 15 to 7.484 million barrels, according to US Energy Information Administration data, but inventories were still 127,000 barrels higher than in the same week last year.


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