Houston ethanol prices hit three-month high and may open Argo arb opportunity

In Texas, ethanol prices from Houston soared to a three-month high of $1.69/gal Monday on the back of restricted supplies and sellers unwilling to let go of their product in such a tight market. With fresh imports not expected until November due to expected delays in loading, prices out of Houston are expected to remain high through October. With higher prices, an arbitrage opportunity may open up with Argo that is currently running at $1.6045/gal.

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