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Argo Slips as Corn Futures Sink 3.5%% on Bearish Inventory
10/10 5:16 PM
Argo Slips as Corn Futures Sink 3.5% on Bearish Inventory WASHINGTON, D.C. (DTN) -- Spot ethanol prices at the Argo terminal in Chicago came under pressure Thursday after U.S. Department of Agriculture reported higher-than-expected estimates of domestic corn supply, sending feedstock corn futures sharply lower in late afternoon trading. Chicago Board of Trade December corn futures ended the session 14cts lower at $3.802 bushel after USDA reduced domestic corn stocks from 2.190 billion bushels to 1.929 bb, a number located at the high end of trade expectations. USDA also cut its demand estimate for corn by 90 million bushels, including a 150 mb reduction in the corn export estimate. USDA's estimate of world ending corn stocks was reduced to 11.91 bb. Following corn markets lower, CBOT November ethanol futures slipped 2.5cts to settle at $1.471 gallon. New York Mercantile Exchange November RBOB futures climbed 3.62cts to end the session at $1.6233 gallon, while oil futures rallied on positive signs in U.S.-China trade talks and supportive comments on supply restrictions from the Organization of the Petroleum Exporting Countries. In physical trade, ethanol spot prices at Argo terminal in Chicago dipped a penny to $1.6450 gallon Thursday afternoon, while ethanol under Rule 11 rail dropped 2cts to $1.60 gallon. In contrast, New York Harbor product added 4.5cts to $1.77 gallon, with East Coast supply down 14.8% against year ago. Houston ethanol was last discussed up 2.5cts at $1.6750 gallon, with Gulf Coast stocks drawn down a steep 800,000 bbl last week government data shows. California product was pegged at $1.7850 gallon on a 2cts gain from the prior session. Liubov Georges, 1.646.359.4088, liubov.georges@dtn.com, www.dtn.com. (c) 2019 DTN. All rights reserved.