Ethanol Blog
Rick Kment DTN Analyst

Monday 11/26/12

Early Buying Supports Ethanol

Ethanol prices shot higher following early support in the corn market. This initial gain in the market helped to allow front-month December contracts to rally 1.4 cents per gallon higher, to close at $2.406 a gallon.

The reasoning behind this move pointed to corn futures racing to an early gain of 4 to 6 cents per bushel Monday morning as traders returned from the long holiday weekend.

But buyer interest slowly eroded through the trading session, with gains of 1 to 2 cents seen in nearby futures at closing bell. But probably the most significant shift in the ethanol market is that nearby contracts moved into an extremely tight trading range.

All contracts through February futures are trading with 0.2 cents per gallon, ranging from $2.406 to $2.408 a gallon. This consistency in the market allows traders to focus on the direction of outside markets with nearby spreads indicating a neutral market structure. This is not likely to change significantly during the remainder of the year.

Rick Kment can be reached at

Posted at 3:40PM CST 11/26/12 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
         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
  • 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
  • DDG Prices Rise Slightly in Slow Week of Trade
  • Ethanol Drawing From Strong Gasoline Demand
  • Grains Council Targets Caribbean Markets
  • Spot Ethanol Prices Mixed in Thin Trade
  • April 1st Buying Frenzy on Supply Reductions
  • Bullish EIA Supply Report Spurs Rally for Ethanol Prices
  • Spot Ethanol Prices Moved Mixed After USDA Report