Ethanol Blog
Rick Kment DTN Analyst

Wednesday 09/05/12

Ethanol Futures Start September on a Positive Note

Ethanol futures posted light to moderate gains as traders returned from the long holiday weekend. The early support in the corn market seemed to fade a little, through the end of the session, but remained positive.

This gave additional support to the ethanol market which has fallen more than 10 cents per gallon through the last week and a half of August. September ethanol futures gained 1 cent per gallon, to close at $2.563 per gallon.

Despite the wider price spread seen during the last two weeks of August, the price for first the trading session of September is within a fraction of a cent per gallon of where prices started on August 1 ($2.563 per gallon September 4, vs. $2.567 per gallon August 1).

Although the start of the month may be nearly identical, there is increased uncertainty as to the direction of the corn and ethanol markets during the next several weeks.

With ethanol production continuing to erode due to tight margins and higher corn prices, and demand for corn in general may start to weaken, there could be wide price shifts over the coming days and weeks, which could easily break prices out of the 10-cent price before the end of September arrives.

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

Posted at 6:14AM CDT 09/05/12 by Rick Kment
Post a Blog Comment:
Your Comment:
DTN reserves the right to delete comments posted to any of our blogs and forums, for reasons including profanity, libel, irrelevant personal attacks and advertisements.
Blog Home Pages
April  2015
S M T W T F S
         1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30      
Subscribe to Ethanol Blog RSS
Recent Blog Posts
  • Spot Ethanol Prices Retreat on Profit-Taking
  • DDG Prices Drop as Barge Freight Falls
  • West Coast Spot Ethanol Prices Spike on Short Squeeze
  • Spot Ethanol Prices Pressured by Bearish EIA Data
  • DDGS Play Vital Role in Nebraska Ethanol Impact
  • Spot Ethanol Prices Flat to Up as Supply Data Eyed
  • Argo, PNW Spot Ethanol Prices Nudge Higher in Thin Trade
  • An Economic Case for Ethanol
  • Spot Ethanol Gains at Argo, Steady in New York Harbor
  • Grains Council Works to Open Cuban Markets
  • Ethanol Production Sliding Lower
  • Spot Ethanol Advances After Bullish Weekly Supply Report
  • D6 RINs Extend Higher; Spot Ethanol Prices Flat
  • D6 RINs Edge Higher While Spot Ethanol Prices Ease
  • Corn Prices Remain Range Bound
  • DDGS Rise to Highest Level in Five Months
  • Spot Ethanol Prices Weaken Amid Sluggish Demand
  • Gasoline Stocks Change Direction
  • Spot Ethanol Prices Mostly Flat in Lackluster Trade
  • Spring Buying in the Air