Ethanol Blog
Rick Kment DTN Analyst

Tuesday 03/04/14

Corn Strength Develops

Aggressive buying quickly redeveloped in ethanol futures market Tuesday with March futures posting a 5-cent-per-gallon rally. This moved prices to $2.34 per gallon in front-month March contracts.

Other nearby contracts posted gains of 2.2 to 2.9 cents per gallon. Traders who have been following the supply tightness in ethanol markets based on transportation issues still remain aggressive, but focus their attention on production costs. Corn futures rallied 12 cents per bushel Tuesday, accounting for a rally of 27 cents per bushel in the last three trading sessions.

The building momentum in the ethanol markets continues to drive additional buyer support into nearby and deferred ethanol futures based on longer term production costs. For now, most traders are not concerned about the higher costs of corn limiting production, but if the current pace of the market continues, plants may start readjusting longer-term production expectations.

Rick Kment can be reached at


Posted at 3:46PM CST 03/04/14 by Rick Kment
Post a Blog Comment:
Your Comment:
DTN reserves the right to delete comments posted to any of our blogs and forums, for reasons including profanity, libel, irrelevant personal attacks and advertisements.
Blog Home Pages
April  2015
         1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30      
Subscribe to Ethanol Blog RSS
Recent Blog Posts
  • Spot Ethanol Prices Retreat on Profit-Taking
  • DDG Prices Drop as Barge Freight Falls
  • West Coast Spot Ethanol Prices Spike on Short Squeeze
  • Spot Ethanol Prices Pressured by Bearish EIA Data
  • DDGS Play Vital Role in Nebraska Ethanol Impact
  • Spot Ethanol Prices Flat to Up as Supply Data Eyed
  • Argo, PNW Spot Ethanol Prices Nudge Higher in Thin Trade
  • An Economic Case for Ethanol
  • Spot Ethanol Gains at Argo, Steady in New York Harbor
  • Grains Council Works to Open Cuban Markets
  • Ethanol Production Sliding Lower
  • Spot Ethanol Advances After Bullish Weekly Supply Report
  • D6 RINs Extend Higher; Spot Ethanol Prices Flat
  • D6 RINs Edge Higher While Spot Ethanol Prices Ease
  • Corn Prices Remain Range Bound
  • DDGS Rise to Highest Level in Five Months
  • Spot Ethanol Prices Weaken Amid Sluggish Demand
  • Gasoline Stocks Change Direction
  • Spot Ethanol Prices Mostly Flat in Lackluster Trade
  • Spring Buying in the Air