Commodities: Ethanol prices surge higher on corn interest
April 26, 2016
BY Rick Kment, DTN
Through the third week of April, moderate-to-strong buyer support has continued to step into the ethanol market as traders focused on firming energy markets and the recent surge in corn values, which pushed corn futures near $4 per bushel.
Moderate pullbacks in corn and ethanol prices were developing in late April, which was putting even more volatility into the market. Despite the recent market pullback, the underlying support during the last couple of weeks points to firm seasonal prices based on expected strong demand from both gasoline movement and the overall movement of ethanol. It is uncertain if the recent rally in ethanol prices will start to limit overall product movement in May or if more supportive economic factors will continue to develop and draw both commercial and investment activity in the coming months.
Ethanol prices have rallied 10 cents over the last month, while RBOB gasoline futures have moved 4 cents per gallon higher in the same time period.
|
Gasoline Prices (By Region) |
||
|
REGION |
SPOT |
RACK |
|
West Coast |
$1.6062 |
$2.0321 |
Advertisement
Midwest
$1.5634
$1.7361
East Coast
$1.4624
$1.4756
Front Month Futures Price (RBOB) $1.5344
|
Ethanol Prices (By Region) |
||
|
REGION |
SPOT |
RACK |
Advertisement
West Coast
$1.7000
$1.8000
Midwest
$1.5200
$1.7326
East Coast
$1.5950
$1.9100
Front Month Futures Price (AC) $1.5200
Related Stories
The U.S Department of Energy Bioenergy Technologies Office, in partnership with the Algae Foundation and NREL, on July 21 announced the grand champion and top four winning teams of the 2023 - 2025 U.S. DOE AlgaePrize Competition.
The USDA significantly increased its estimate for 2025-’26 soybean oil use in biofuel production in its latest World Agricultural Supply and Demand Estimates report, released July 11. The outlook for soybean production was revised down.
U.S. fuel ethanol capacity fell slightly in April, while biodiesel and renewable diesel capacity held steady, according to data released by the U.S. EIA on June 30. Feedstock consumption was down when compared to the previous month.
The U.S. EPA on July 8 hosted virtual public hearing to gather input on the agency’s recently released proposed rule to set 2026 and 2027 RFS RVOs. Members of the biofuel industry were among those to offer testimony during the event.
The USDA’s Risk Management Agency is implementing multiple changes to the Camelina pilot insurance program for the 2026 and succeeding crop years. The changes will expand coverage options and provide greater flexibility for producers.
Upcoming Events
