S&P Global Platts proposes to assess ethanol delivered via train to Houston, effective Nov. 1, 2021.
The proposed delivered rail assessment would reflect spot domestic activity and bring greater transparency to the US Gulf Coast ethanol market.
The proposed new assessment would reflect full trains of ethanol that are delivered into the Pasadena, Bayport, Texas City and Galveston terminals in the Houston area.
The assessment would reflect trains arriving 15 to 30 days' forward on a rolling basis. Buyers would have the option as to which terminal the train is delivered. Sellers would pay freight to the terminal.
Platts is proposing to publish this new assessment both as an outright price and as a differential to the Platts Ethanol Chicago front-month derivative in cents/gal.
In addition, Platts is proposing to assess the FOB Houston market as a premium to the delivered Houston rail assessment in the absence of FOB price indications. The premium would factor logistical and FOB costs.
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