The ethanol future has been on a roll during the last week, with prices gaining more than 20 cents per gallon in that time period. In the last two trading sessions alone, prices have risen to $2.62 as traders look at increased demand during the coming weeks and months.
The corn market has moved higher, too, in the same period, gaining 25 cents per bushel. The higher corn price and strong basis levels across the country are limiting aggressive production capacity at many plants. Combined with the losses in production during the last week documented on in the latest EIA report and reduced ethanol inventories, traders are becoming more aggressive.
This could push additional support into ethanol futures markets, as traders look for ways to secure needed supplies of ethanol through spring and summer. Even though prices are sharply higher, there continues to be concern about maintaining buyer interest in the market during the long term.
Rick Kment can be reached at email@example.com
© Copyright 2013 DTN/The Progressive Farmer. All rights reserved.
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT T
More Recommended for You
Recommended for You
A number of ethanol and agriculture groups submitted public comments on the proposed Renewable...
The U.S. Environmental Protection Agency on Wednesday granted a waiver on low-volatility...