Ethanol Blog
Rick Kment DTN Analyst

Wednesday 01/23/13

Ethanol in Possible Direction Change

Ethanol futures adjusted lower Wednesday with prices falling after moving steadily higher over the last three weeks.

Traders are focusing on the pullback of 7 cents per bushel in the corn market, as well as the concern of lower short-term ethanol and gasoline demand.

Nearby ethanol futures fell 1.5 to 2 cents per gallon, which indicates traders are moving back in line with the direction of the corn market, unlike activity seen in the last two weeks.

February ethanol futures closed at $2.379 per gallon, losing 2 cents per gallon. The inability to break through $2.40 per gallon in front-month futures, along with the break in grain price levels, seems to have at least temporarily affected the ability for ethanol markets to move higher.

Without a strong rally in corn markets during the next couple of trading sessions, it is likely going to be very challenging for ethanol futures to move higher or even hold current values in the near future.

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

Posted at 2:40PM CST 01/23/13 by Rick Kment
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