Magellan closes Milford, Iowa, rack after spill

* Rack closed late Sunday after diesel spill

* No supply shortage, expects to reopen on Friday

HOUSTON, March 17 (Reuters) - Magellan Midstream Partners (MMP.N) closed the rack for ultra-low sulfur diesel and gasoline at its Milford, Iowa, terminal after a diesel spill late Sunday, a spokesman for the pipeline said on Wednesday.

The rack is expected reopen on Friday, according to Bruce Heine, company spokesman.

Heine said he doesn't expect any problems with supply in the area. He said that NuStar Energy (NS.N) also has a terminal in Milford and Magellan has other terminals in close proximity.

(Reporting by Janet McGurty; Editing by Lisa Shumaker)