Ethanol Blog

Ethanol futures rallied 3 to 4 cents per gallon higher Tuesday as traders followed grain markets higher. Strong support quickly developed in the corn futures market. This kept prices with double-digit gains through most of the trading session.

Although front-month July futures lost a portion of the early support by the end of the session, other nearby contracts gained a strong 14 to 17 cents. June futures rose 3.1 cents per gallon. The front-month contract is still priced at a strong premium over other summer contracts.

Traders may start to back away from the market following the Memorial Day holiday. But the direction and demand intensity of the ethanol market is going to be tied closely to the movement in the RBOB gasoline market.

Rick Kment can be reached at rick.kment@telventdtn.com