The spread between New York Harbor, the busiest trading hub on the East Coast, and the 

benchmark  Argo  market  remained  at  a  four-month  high Friday as prices in Argo have 

weakened in recent days. 

New York Harbor was at a 12.75-cent premium to Argo Thursday and Friday, the highest sin

ce January. 

High premiums in New York Harbor have encouraged buyers in that market to bid higher to 

attract rail cars into that market. 

Rail markets across the US have been at a high premium during seasonal maintenance. Th

at has dried up supply for New York Harbor and driven premiums higher. 

"It's the normal spread of locations: Texas, Rule 11 and delivered locations," said a market 

participant Friday. 

Houston is the most common origin for exports out of the US, so market participants striving 

to meet export demand have captured much of the available rail market. 

Producer selling in the Argo market has weighed on that market, driving up the premiums in 

rail markets. 

Even  though  there  is product available in Chicago, moving ethanol from Kinder Morgan's 

terminal in Argo, Illinois, to rail cars is not logistically easy and can cost too much to capture 

currently-high spreads. 

"A lot of guys are confused and gun shy," said another source about currently low levels in 

Chicago compared with premiums elsewhere.