Ethanol Blog

Energy Pressure Follows Weaker Stock Market

Rick Kment
By  Rick Kment , DTN Analyst

Ethanol futures were mixed in a narrow range Monday as traders continue to focus on spilt market direction following widespread financial concerns in Greece. The strong 300-point loss in the Dow Jones Index quickly swept through crude oil futures, pushing prices triple-digits lower. Moderate pressure developed in RBOB gasoline futures. Traders were focused on concerns that world demand for energy could erode if issues faced in Greece spark concerns in other parts of the world. Deferred RBOB contracts were hardest hit on worries that stockpiles may aggressively grow after the domestic summer driving season wraps up. Ethanol futures seem to be dealing with a much more complicated split market with recent gains in corn prices. This helped push 0.8 cent per gallon gains in front-month July futures, while deferred contracts followed the energy market lower, falling as much as 2.3 cents per gallon. This could spark some additional wide shifts in upcoming weeks.

(CZ)

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