Chicago paper ethanol market flips to a premium over Argo

In Illinois, the ethanol paper market flipped to a premium over physical Argo ethanol for the first time since mid-August 2016. The contango position is seasonal as demand slips while producers continue to chug out fuel, taking advantage of low feedstock prices and high crush margins. With ethanol production at an all time high during the week ending December 30 at more than 1.04 million barrels per day, stocks are expected to build up in key regions.