It is too early to fully disclose the direction of the ethanol market for the week, but the monthly moves in ethanol futures are now in the books for February.
End-of-the-month positioning seemed to be a big player in outside markets, and helped corn post strong gains. This upward movement in the corn market drew additional buyer support into all nearby contracts. March ethanol futures led the market higher, gaining 1.9 cents per gallon. For the week so far, prices are 4 cents per gallon higher.
But this will be overshadowed by the loss of more than 6 cents per gallon through February. But even though the movements of the past are important measuring posts, the ethanol market continues to be focusing forward. On increased production capacity, growing demand, and uncertainty about upcoming drought conditions.
This is once again putting the emphasis on the corn market and one reason why ethanol futures resumed the following position to corn futures at month's end.
Rick Kment can be reached at firstname.lastname@example.org