Over the last three weeks, the front-month ethanol futures has fallen nearly 20 cents per gallon. This tumble lower has been a result of the up-and-down movements in the corn market that have ultimately fallen 61 cents per bushel during that time.
The lack of additional news in the market concerning poor harvest yields, as well as sluggish overall demand for corn, has led to less aggressive buying, and ultimately a pullback in prices. There still seems to be some uncertainty going into Wednesday's USDA report about government expectations of supply and demand levels, but ethanol traders are desperately looking for a sense of market stability through the early fall.
But the hope of easily navigating the market landscape during the next several weeks is likely to remain extremely challenging.
Rick Kment can be reached at firstname.lastname@example.org
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