Ethanol futures rallied higher Tuesday as traders returned to the market focusing on the long weekend, as well as changing market conditions.
Ethanol traders quickly swept through the market as a reactionary shift was seen following the surge in corn prices. Nearly all ag commodity markets found strong buyer support Tuesday with corn futures rallying 7 cents per bushel higher in moderate to firm trade activity.
The overall focus of the higher corn prices quickly seemed to offset the downward trend that ethanol markets had taken during the last two weeks. The overall lack of demand in the market continues to drive the complex lower in the long-term; however, if a continued shift is seen in grain markets, this trend could quickly be changed. Buyer support could move back into outside markets and shift the activity levels of many traders.
Front-month February futures rallied 3 cents, moving prices more than $1.50 per gallon.
Rick Kment can be reached at firstname.lastname@example.org
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