Ethanol Blog

Ethanol Futures Close Week Higher

Rick Kment
By  Rick Kment , DTN Analyst

Firm buying interest developed in late-week trade through nearby ethanol futures despite strong pressure in both corn and energy markets. July ethanol futures were able to hold a 2.7-cent-per-gallon rally late Friday. This could help to draw additional interest into the market through the end of June.

The strong push higher in the market helped to push prices higher for the week as front-month futures rallied 1.2 cents per gallon for the week. The recent growth in ethanol stocks is still creating some underlying deep concerns that overall demand may be slipping faster than usual through the June and could allow longer-term price pressure.

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But at least for now, buyers are focusing on prices hovering near $1.50 per gallon. While ethanol prices posted moderate-to-strong gains, corn prices fell 4 to 5 cents per bushel, while nearby RBOB gasoline futures tumbled 3 to 5 cents per gallon.

Traders will closely follow outside market shifts early next week, as well as the further moves in gasoline supplies which will be announced mid next week.

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

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