Ethanol futures have broken away from the bearish trend in energy markets through the middle of January as the focus has turned to the rebound in corn prices following the January USDA supply and demand, and production report.
The potential for additional corn market support through the next two weeks could help to draw additional light buyer support into ethanol markets, although there is very limited upside market potential to ethanol prices based on demand support.
Blending demand will remain sluggish as ethanol production continues to expand over the next two weeks with inventory growing steadily as seasonally is usually the case through the first three months of the year. It is expected that ethanol futures will continue to hover between $2.25 and $2.40 per gallon over the next month with uncertainty in all commodity markets, especially concerning the energy sector as consumers remain focused on paling economic conditions.
Rick Kment can be reached at firstname.lastname@example.org
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