Ethanol Blog

Ethanol Prices Establish Trading Range

Rick Kment
By  Rick Kment , DTN Analyst

Prices in nearby and deferred ethanol futures posted narrow gains Monday based on late-day support in the corn market. But the lack of underlying buyer interest redeveloping in the complex limited price movements to fractional gains and is creating the potential that prices may hover in the current trading range over the near future. Pressure late last week seemed to take the wind out of any expectations of continued market support, and is causing some traders to wonder if long-term buying interest can be redeveloped even as demand is likely to grow over the next couple of months. There will be a lot of emphasis on this week's EIA data which will be released Wednesday as traders focus not only on inventory shifts in the first week of March, but also any sustainable shift in production levels across the country. But without a bullish report over the next few days, it is unlikely that price levels will see significant support.

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

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