Ethanol Blog
Rick Kment DTN Analyst

Tuesday 12/10/13

Ethanol Futures Unsupported

USDA increased demand for corn used for ethanol production in the latest supply and demand report. Corn demand moving to ethanol production increased in the report by 50 million bushels. This pushed current estimates to 4.95 billion bushels. The expectations that corn prices will remain under pressure during the near future is drawing additional production back into the market.

This did very little to support corn or ethanol markets as each of the markets posted slight losses through the session. Ethanol futures are now focusing on the potential that higher production will take the emphasis off of tighter ethanol inventories through the early part of 2014.

This could create some additional light pressure in the market, but is unexpected to cause a major shift in trade activity long term. January ethanol futures lost 1.3 cents per gallon following the report's release.

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

(ES)

Posted at 3:12PM CST 12/10/13 by Rick Kment
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