Spot ethanol prices were shallowly mixed in thin trade early Friday as Chicago Board of Trade corn futures gained while weak fundamentals for ethanol weighed against the temptation by hedge funds to cover short positions in the oversold market.
"Regarding corn, I agree (because) at these lower levels I could see funds supporting," said a key trader whose company also operates ethanol plants. "Regarding ethanol, oversupplied market and lack of demand is a killer."
George Orwel can be reached at firstname.lastname@example.org.
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