Ethanol futures continue to show additional support late in the week. The overall bullishness in the market is evident as traders are focusing on reduced overall ethanol production last week as well as inventory levels that continue to erode. For the week, May ethanol futures prices increased 6.6 cents per gallon, closing at $2.488 a gallon. The corn market fell 6 cents per bushel during the last week, and RBOB gasoline prices slipped nearly 3 cents per gallon. Although the shifts in the corn and RBOB gasoline market could be considered nearly stable, it is evident that ethanol contracts have broken away from both markets. There still remains a lot of uncertainty in the ethanol market surrounding future demand and production costs. The wide swings in the stock market through the week may play an even bigger part in ethanol market movements over the next several weeks. But for now, traders are focused primarily on short-term supplies.
Rick Kment can be reached at firstname.lastname@example.org
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