Ethanol futures prices slipped lower through the trading session as the weakness in the corn market Thursday sparked additional weakness in the ethanol complex.
The inability for ethanol prices to gain significant support over the previous couple of days, when moderate support was seen in grain markets, is also creating some caution that the recent slowing gasoline and ethanol demand could continue to erode through the energy markets.
January and February futures lost 1.2 cents per gallon, with January contracts closing at $2.409 a gallon. Even if there remains challenges to increase overall demand for ethanol, traders continue to focus on the historically strong corn prices which are keeping margins depressed for ethanol producers.
Rick Kment can be reached at email@example.com
© Copyright 2012 DTN/The Progressive Farmer. All rights reserved.