Ethanol Blog
Rick Kment DTN Analyst

Thursday 04/10/14

Volatility Rules Ethanol Prices Still

May ethanol futures prices posted aggressive market gains Thursday after a downturn in the market developed earlier in the week. Growing ethanol stocks and current pressure in corn prices would not have predicted the late-week rally seen in nearby ethanol contracts. Although trade volume remains light in nearby contracts, volatility seems to be the nature of business, and this is likely to continue through the next several days, and even weeks. Ethanol demand is likely to remain strong. And although transportation delays are more limited than over the past couple of months, the focus on moving product from production plants to metro areas could be a challenge over the next couple of months. It is unlikely that prices will see the price support over the last month, with prices nearing $3 per gallon once again. But a wide range between $2.10 and $2.50 per gallon is very likely as traders adjust to the upcoming demand and supply concerns. Commercial traders are concerned about gaining access to product on a daily basis, allowing nearby price spreads to widen in the Thursday session.

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

(ES)

Posted at 2:37PM CDT 04/10/14 by Rick Kment
Post a Blog Comment:
Your Comment:
DTN reserves the right to delete comments posted to any of our blogs and forums, for reasons including profanity, libel, irrelevant personal attacks and advertisements.
Blog Home Pages
August  2014
S M T W T F S
               1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
31                  
Subscribe to Ethanol Blog RSS
Recent Blog Posts