The U.S. ethanol crush margin on July 20 crumbled to 7.07 cents/gal, down by 27.34 cents since S&P Global Platts last published its crush margin tracker on July 13.
The crush margin plunged due to sinking prices of Chicago Argo ethanol, which has been in a free fall since Dec. 8.
Platts assessed Chicago Argo ethanol at $1.2430/gal on July 20, down 29 cents from July 13. After thin inventories pushed prices to seven-month highs on July 8, the values have plummeted.
Sellers looking to take advantage of the high premiums charged at the Argo terminal have diverted ethanol from nearby rail markets to Argo, swelling supplies and quashing prices.
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