Ethanol Blog

Nearby ethanol futures surged 5 to 6 cents per gallon Tuesday based on support in outside markets. No matter if ethanol traders focused on the corn market price or prices of RBOR gasoline markets, the end result was the same -- sharply higher prices.

Corn futures rallied through the middle of the trading session, gaining 16 cents per bushel. RBOB gasoline futures also found additional buyer support based on strong expectations of demand support and aggressive crude oil gains.

Although the ethanol market has not seen the same aggressiveness as the RBOB gasoline market, which has rallied 21 cents per gallon in the last three trading sessions, the move to $1.44 per gallon is enough to get most traders' attention and draw additional interest back into the market.

It is still uncertain if the trend has yet turned higher, but the aggressiveness in the market over the last few trading sessions is creating a significant case that additional support may continue to develop through February.

Rick Kment can be reached at rick.kment@dtn.com

(ES)

© Copyright 2015 DTN/The Progressive Farmer. All rights reserved.