Canadian National Railway's embargo on moving ethanol rail cars to Kinder Morgan's Argo, IL, terminal has had little effect on the key North American market so far, sources said Tuesday.
S&P Global reports the embargo, put into effect September 5, was imposed to alleviate congestion in the rail yards at Argo, according to the Association of American Railroads' embargo system website.
High production rates and inventories in recent weeks have weighed on values at Argo, the most liquid ethanol trading hub in the U.S.
The embargo is unlikely to support prices in Argo, given the large amount of product sitting in rail cars just outside the terminal.
