Chicago Argo ethanol reaches highest level since early March

Houston — For the second time in as many trading sessions, Chicago Argo ethanol prices reached a new multi-week high.

S&P Global Platts assessed benchmark Chicago Argo ethanol at $1.2710/gal, up 2.05 cents on the day, and the highest value since reaching $1.2740/gal on March 4. Argo ethanol has increased in six straight sessions.

Since reaching an all-time low of 81.05 cents/gal on April 1, Argo ethanol prices have risen 46.05 cents.

Prices in the dominant US ethanol trading hub have jumped in recent trading as customers have drawn down inventories. The US Army Corps of Engineers is scheduled to begin its locks maintenance project on the Illinois River on July 1.

As a result, customers are trying to load barges with product to ship out of Kinder Morgan's Argo, Illinois, terminal before the project limits barge traffic into and out of the terminal.

Argo's strength has spilled to other ethanol markets as well. Chicago ethanol swaps settled against the physical Argo price have risen as well. Since other physical markets, such as Houston and New York harbor are priced against the ethanol swaps, Argo's rising prices have pushed prices up in those markets as well.