Houston ethanol premium pushed higher by rail challenges and export stocks

In Texas, Platts reports that export demand and challenges with Union Pacific rail logistics from the Midwest to the Gulf region are helping to push up premiums for Houston ethanol to 10.5 cents per gallon despite there being plenty of stocks in both regions. Late February saw the Houston premium reach 14.2 cents, the highest seen since December 2016, encouraging product into the Gulf, with most of the stocks build nationally taking place in the region. But as the fuel is export grade and not for domestic consumption, local demand is not so easily filled, helping to support the premium despite a surplus of product.