Ethanol futures continue to rally higher through early October, expanding fall gains further as strong corn market support and aggressive RBOB gasoline buyer interest continues to create a combined one-two punch that is causing counter seasonal market interest.
November ethanol futures closed Friday afternoon at $1.58 per gallon, after rallying 1.8 cents per gallon. This is a 22-cent surge since the summer low seen on in the November contracts on Aug. 1. The choppy but firm support developing in ethanol markets has closely followed the rise in corn prices, which are now trading above $3.50 per bushel for the first time since mid-July. Expected strong corn and gasoline demand during the next year is sparking the firm support in ethanol markets.
Rick Kment can be reached at firstname.lastname@example.org
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