Ethanol Blog

Despite back-and-forth volatility in the energy complex, the ethanol market seems to be trying to settle in for a calm and steady holiday as prices remain narrowly mixed Tuesday. RBOB gasoline prices bounced higher, as traders seem to be shooting for stability in the market before Christmas, as well as before the end of the year. Although there is very little long-term support building through the gasoline or ethanol market, the recent pressure seems to have created a temporary bottom at which buyers may start to slowly trickle into the market. Ethanol futures hovered between 0.6 cents lower to 0.8 cents per gallon higher Tuesday despite gains in both the corn and energy complex. This is putting more focus on deferred ethanol contracts around $1.55 per gallon, and may create a long-term limit on price support. Trade is expected to remain extremely sluggish through the rest of the week with most traders likely remaining on the sideline. This could put even more emphasis on traders stepping back into the market early next week, just before the end of the year.

(CZ)

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