Ethanol futures pushed moderately higher Thursday following moderate price support in the corn market. August futures settled above $1.50 per gallon for the first time in a week at $1.501 per gallon following a 1.9 cent per gallon rally. Additional buyer support is seen in late-day trading after settlement of the markets, but this support will be short-lived. There was very little indication of buying developing through the complex except for the moderate to strong gains seen during late-day trade in corn futures. Additional concerns surrounding Corn Belt weather and the overall ability to produce expected corn and soybean bushels by the end of the year are drawing buyers back into the market. The corn market is likely to remain extremely volatile over the next month, which will have the largest impact on short-term and long-term ethanol prices. Gains through the ethanol market remained consistently higher from 1 to 1.9 cents per gallon Thursday, as traders also focused on end-of-the-month positioning, which will be taking place from now until Friday afternoon.
Rick Kment can be reached at firstname.lastname@example.org
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