Ethanol futures posted sharp double-digit losses Tuesday as additional lack of direction followed no governmental data as well as unwinding spreads between October and November contracts took place.
October futures fell 12.3 cents per gallon, closing at $1.787 a gallon. This indicates a drop of 22 cents per gallon in front-month futures in less than a week. Traders who ran the price higher based on struggling supplies seem to fear the worst with no weekly data released from the EIA. The inability to gage ethanol demand, production and inventory levels is creating significant pressure in nearby contracts. This lack of support may continue over the near future with traders focusing on lack of additional market direction.
Rick Kment can be reached at firstname.lastname@example.org
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