Movement in the ethanol markets remained extremely light following Christmas, as most of the buying needs for the year are already in the books. Traders are looking at outside markets, and also expected demand changes in the future.
Although the holiday schedule delayed the release of EIA weekly reports til Friday, overall ethanol supplies are expected to rise. This has limited any aggressive buying in the futures markets.
Spot ethanol markets continue to bounce higher and lower through the end of the week, with buyers expected to be out of the market until after the New Year's holiday. Buyers have a better sense of just how short-term buying interest will develop through January. Despite the movements in the corn and ethanol, futures markets and product supplies, the lack of direction in the economy surrounding the "fiscal cliff" will affect commodity and financial markets after January 1.
Rick Kment can be reached at email@example.com
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