Ethanol futures have fallen nearly 5 cents per gallon during the last two trading session in front-month June contracts. This lack of support in the market seems to indicate that despite the expectation that ethanol supplies will likely tighten further, traders may be less aggressive now that Memorial Day has passed.
There is very little support in new-crop corn futures through the first two days of June with planting progress speeding toward completion. The uncertainty of corn buying activity could continue to limit ethanol trade, especially given the current inability for ethanol traders to step into the market. RBOB gasoline futures have found renewed support given moderate to aggressive buyer activity in the energy complex.
Rick Kment can be found at firstname.lastname@example.org