Ethanol Blog

Moderate to strong support has developed through November ethanol futures over the last two weeks. This indicates a short-term uptrend based on renewed buying trickling back into ethanol futures.

Ethanol futures continued to move higher Tuesday, posting a strong 4.1 cent per gallon gain in the November contract. This pushed prices to $1.784 per gallon, a contract high not seen since early September. Renewed support from corn futures as well as expectations that overall ethanol stocks will remain tight through much of October are leading to firm but steady price support in both nearby and deferred contract months. Moderate to strong premiums continue to hold in front-month futures; currently November is priced 12 cents over the December contract. This is further indication of firm commercial support through the ethanol market. Even with cash corn prices around $4 per bushel, there still seems to be very little new interest in aggressively increasing ethanol production. Many buyers are waiting to see just how strong corn harvest is across the country.

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