The corn market rallied sharply higher through the last two hours of trade, with nearby futures contracts posting a 12-cent rally in contracts through the July 2013 contract month.
This sparked additional buyer support in the ethanol complex, with front-month December contracts being the most affected as prices rallied 3.2 cents per gallon. All other nearby contracts gained 2.1 to 2.7 cents per gallon, with traders focusing on the potential for this bullishness in the corn market to continue and draw additional commercial and investment trade into the market through the near future.
With the latest market gains seen in the ethanol market, traders are still squarely focused on production costs and the value of corn. RBOB gasoline markets are seen as being loosely connected with the ethanol market at this point as demand remains stable and the ethanol market remains at a 30-cent discount to RBOB gasoline market.
Rick Kment can be reached at email@example.com
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