The renewed buyer support which developed through the complex Monday pushed front-month May contracts 1 cent per gallon higher late in the day, pushing prices to $1.557 per gallon during late-afternoon trade.
This market shift sets new contract highs for 2016 and the highest price in May contracts since October 2015. The rally in ethanol markets is based on the renewed buyer support developing in the corn market focusing on the expected demand support while planting progress continues to improve through the spring.
Additional planted acreage continues to limit upward market support long term, but short-term buyer support is helping to keep ethanol prices above $1.50 per gallon while energy markets continue to erode. Light trade volume continues to hold through the complex limiting market activity keeping prices in a tight range.
Rick Kment can be reached at email@example.com
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