What’s HOT & What’s NOT
Cocoa futures hit new all-time highs (again) this morning on continued concerns about shrinking global supplies. The market is quickly closing in on $5 per pound - a stark contrast from the ~$1 per pound prices cocoa maintained for years.
To put its rally in perspective…
Gasoline futures are also hot, hovering near their highest levels since August of last year while ethanol sits at a 4-month high.
Front-month gasoline is up 20% year-to-date while ethanol has hardly rallied 5%, driving the spread between the two to historical highs.
Rbob has maintained a $1 premium over ethanol for 4 consecutive weeks now, encouraging blending:
Margins (according to Iowa State’s model) are well off their highs, but remain positive:
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