Ethanol Blog
Rick Kment DTN Analyst
Wed Mar 19, 2014 05:18 PM CDT

Prices between RBOB gasoline and ethanol markets have been quickly narrowing over the last two weeks following strong and aggressive buying support in front-month ethanol contracts. The current price spread now stands at 33 cents per gallon, meaning that front-month RBOB gasoline contracts are priced 33 cents per gallon over the ethanol contract price. On a weekly price chart, this is the narrowest spread seen since June of 2013. The recent reduction of ethanol production over the last couple of weeks, combined with tumbling inventory levels has created aggressive buyer interest in ethanol contracts.

This could lead to additional support ...

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