After ethanol futures posted gains of nearly 40 cents per gallon during the early part of November, lack of activity is causing some major market corrections Monday. Trader interest Monday seems to be lackluster to say the least, which is not uncharacteristic for a holiday week. December contracts are holding losses over 8 cents per gallon, at $1.954 a gallon late Monday. This move below $2 per gallon, could cause additional pressure to develop through ethanol markets over the upcoming trading sessions. With very little additional market developments are likely to be seen in front of the Thanksgiving break at the end of the week. But the shear fact that trade volumes could remain extremely light may keep prices under pressure and set the tone for renewed losses through the end of the month. This may change the direction of markets in both ethanol and energy futures through early December.
Rick Kment can be reached at firstname.lastname@example.org
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