Ethanol Blog
Rick Kment DTN Analyst

Thursday 07/18/13

Ethanol Prices Lose Momentum

Front-month August ethanol futures have fallen over 5 cents per gallon over the last two trading sessions. The pressure in the corn market is part of the weakness in the ethanol complex. But traders are focusing on the potential supply increases through the upcoming weeks and months. Currently, ethanol production is keeping up with current post-Fourth of July demand. This could allow stocks to rebuild through the end of the month. The move higher in the weekly EIA inventory levels for ethanol at the end of last week is giving some indication that stocks may continue to build. But traders are already looking for more clarification in next week's report to indicate if this may be a start of a trend, or continued choppy up-and-down moves which have been very common this summer. Front-month August contracts have led the market lower, falling 2.3 cents per gallon on Thursday.

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

Posted at 2:09PM CDT 07/18/13 by Rick Kment
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