Ethanol contracts found additional aggressive support in front-month futures Thursday. Front-month October contracts have reacted positively to the tighter ethanol supplies.
Front-month contracts have rallied nearly 10 cents per gallon over the last two trading sessions. There is the potential for additional strong gains to still develop in nearby ethanol contracts if additional pressure is seen in inventory levels.
Corn prices have seen moderate price support, but the idea that longer-term corn gains are keeping most traders aggressively focusing on long-term ethanol production changes if corn supplies tighten over the next few months. Energy prices were not supportive to the renewed buying interest in ethanol markets as prices tumbled lower in both gasoline and crude oil markets.
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