Futures were lower on reports of increased producer selling and in response to the weakness in petroleum futures. The problems around Houston were expected to start to improve over the weekend as the weather has turned drier. Further improvement in conditions for reopening petroleum refineries is expected this week. Ideas are that higher petroleum prices that are likely from the hurricane in Houston could mean more demand for ethanol. The market expects firmer prices over time in part due to the moves in Brazil to increase ethanol production through higher gas prices and as the Indian harvest could be delayed due to wet conditions that would delay sugarcane harvesting.
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