Houston — Premiums in the New York Harbor ethanol market fell steadily over the past week as previously difficult logistics for moving product into the US East Coast hub have eased.
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"Equipment is getting moved and the [Mississippi River] is not frozen in," said one source.
Cold weather in late December and January delayed ethanol delivery trains in Pennsylvania, driving up prices in New York Harbor.
The premium for February New York Harbor barges to the corresponding Chicago ethanol swap was unchanged day on day at 10.25 cents/gal Friday. It peaked at 11.75 cents/gal at the end of January.
High demand for exports also encouraged some market participants to stage product in New York Harbor, driving up the premium.
January saw a strong structure in the paper market, prompting traders to buy product and store it after selling it further down the curve. Some moved product to New York Harbor for storage.
But as the structure in the market has flattened the premium has retreated.