Ethanol futures rallied higher following a very strong showing in the corn market. July corn futures are the center of attention in the corn market, which rallied 19 cents per gallon. This surge helped to draw additional trade back into the front-month ethanol complex.
July ethanol futures rallied 7.4 cents per gallon higher, to close at $2.68 a gallon. The focus in the ethanol market continues to be driven more by the shrinking inventory levels and rising demand than corn price shifts.
But the most recent shift in corn prices could help to draw even more price support into the ethanol complex. There will be a lot of focus put on the direction of the corn and ethanol markets over the next few days. Energy prices took a big price hit Monday, but so far this had very little implications to the nearby ethanol contracts.
Rick Kment can be reached at email@example.com
© Copyright 2013 DTN/The Progressive Farmer. All rights reserved.