Moderate buyer support has continued to trickle back into the ethanol futures market as front-month May futures contracts inch closer to $2.30 per gallon. Traders are focusing on the potential increased demand for both gasoline and ethanol over the next two months.
The recent market support in corn prices is also leading to increased activity levels of buyers as they try to secure both short- and long-term market positions over the coming days and weeks. May futures are holding an 8-cents-per-gallon premium over the June contract as commercial buyers remain focused on securing spot product.
But the 12-cent bounce over month-long lows continues to help solidify moderate buyer support and point to additional interest still developing. May corn futures posted an 8-cents-per-bushel gain, this continues to extend the rally that started on April 21. Additional concerns around delayed planting through spring appear to still be drawing additional buyer support into the corn complex in late April.
Rick Kment can be reached at firstname.lastname@example.org
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