Nov. 29—Ethanol prices firmed as fall headed into the winter season, with many producers said to be sold out of 2006 product.
East Coast spot ethanol through the first half of December had prices in the upper $2.30s per gallon. Both railcar and barge deals to New York Harbor were as high as $2.39 per gallon as November drew to a close—up some 15 cents from spot prices that opened the month. In contrast, forward prices for similar deals in January ran around a dime cheaper than December.

Midwest spot material was increasingly hard to find and also sharply firmer over the month. Chicago spot offers for barge-volume deals offered around $2.28 to $2.29 per gallon for the first half of December. Sources reiterated there was little material available for the balance of the year as Chicago-area bids moved up into the $2.20s per gallon.

However, January ethanol in Chicago was discussed between $2.10 and $2.19 per gallon, with first quarter product trading around $2.17 per gallon.

Though Midwest rack price gains tended to "top out" going into December, there was little sign they were giving up gains. Iowa racks averaged $2.23 per gallon late in November, still up more than a dime over the month.

Gulf Coast spot barge ethanol traded at $2.35 per gallon, also up about a dime for the month. Gains were more modest in the West Coast, where California rail deals were done in the low $2.30s per gallon, though some late offers in the $2.40s per gallon suggested prices out west may build momentum before the end of the year.

For more information, contact OPIS Fuel Ethanol Report at (888) 301-2645, ext. 2478.