Spot ethanol prices moved higher Monday on an advance by Chicago Mercantile Exchange corn futures, with corn futures rallying from a better than three-year low Friday on a supportive crop report from the U.S. Department of Agriculture that showed lower corn supply than expected.
"The corn (price) is just rallying off of last Friday's report," said Jerrod Kitt, analyst for the Linn Group of Chicago, Illinois. "It wasn't anything (strongly) bullish and was not as bearish as expected. People are covering shorts."
CME December corn futures rallied to a two-week high of $4.372 bushel Monday after sinking to its lowest point since August 2010 at $4.154 ahead of the USDA report.
Spot ethanol at the Argo hub near Chicago gained 3.0 cents Monday, bid at a $1.80 with the asking price at $1.83 per gallon.
Myke Feinman can be reached at email@example.com.
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