Ethanol Blog
Rick Kment DTN Analyst

Friday 09/21/12

Ethanol Futures Post Sharp Losses

The front-month October ethanol futures fell 16.2 cents per gallon during the third week of September. The sharp reduction of the corn market led to the active price pressure in the ethanol complex, and left many in the market wondering just how much support will the ethanol market have when traders return to the market Monday. This loss was the greatest one-week price reduction seen in the 18 months, since March of 2011. Sharp double-digit gains have been seen as recently as July. With four consecutive double-digit weekly price gains seen in July moving the market 63 cents higher. The ability to work prices sharply lower day after day seems to be much more of a challenge. Traders at the end of the week seemed to stop the rapid decline in prices, but at this point, it is uncertain if this support will hold or if it is based on end-of-the-week positioning in front of what could be yet another wild week in both corn and ethanol markets.

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

Posted at 3:38PM CDT 09/21/12 by Rick Kment
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