Ethanol futures closed fractionally higher in the January futures contract Friday afternoon. The light buying interest returned to the market following a 10-cent gain in the March corn futures.
Although the market ended on a positive note Friday with a 0.8-cent-per-gallon gain, it was too little, too late to make much of an impact following significant pressure through the rest of the week.
Friday marked the first time in the last seven sessions where front-month contracts prices moved in a positive direction. January futures closed at $2.298 a gallon, but have fallen 7.7 cents per gallon through the week and have fallen nearly 11 cents per gallon in the month of December.
Additional concerns about corn price direction and the overall surging ethanol inventory situation continue to keep traders unwilling to aggressively step back into the market.
Rick Kment can be reached at firstname.lastname@example.org
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