Platts to assess Rule 11 Chicago ethanol September 1

Platts is proposing to begin assessing the Rule 11 Chicago ethanol market beginning September 1, 2011.

The assessment would be Chicago basis and reflect transactions 5-15 days from date of publication, for minimum five railcar lots amounting to 145,000 gallons.

"Rule 11" is a railroad accounting term that refers to a customer shipping their freight "pre-paid" to an intermediate point and "collecting" beyond that intermediate point to the final destination.

In the case of ethanol, much of the current production west of Chicago (that is intended for eastern US destinations) is shipped by rail to Chicago where the individual railcar is detached from the original train and eventually re-attached to a second train for ultimate delivery.

The content for the railcars are traded in this scenario, which is commonly referred to as "Rule 11."

Platts current Chicago ethanol assessment is an in-tank transfer basis, at the Argo terminal.

Please provide feedback or submit questions by September 1, 2011 to americas_products@platts.com; and Platts price group, at pricegroup@platts.com.