Spot ethanol prices rallied in Chicago Friday on rising demand, with Chicago Board of Trade ethanol futures surging to a two-week high amid short covering ahead the weekend.
There is also support for ethanol coming from a rally for RBOB futures on the New York Mercantile Exchange linked to talk demand is picking up before the U.S. Memorial Day holiday.
Consumption of ethanol blended gasoline is expected to rise during the peak-driving summer season. U.S. data showed Midwest supply fell to a five-month low. Today transfer ethanol at Argo traded at $2.40 per gallon while next week ethanol transfer traded at $2.35 and $2.36 per gallon, up 9.0 cents. Chicago ethanol under Rule 11 traded at $2.44 per gallon, up 7.0 cents.
George Orwel can be reached at firstname.lastname@example.org
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