Ethanol Blog

Ethanol Futures Testing Resistance Levels

Rick Kment
By  Rick Kment , DTN Analyst

Moderate to strong price support quickly developed through ethanol futures early Tuesday as traders focused on the stability in corn prices through most of the session as well as expectations that additional buyer interest will continue to develop through the RBOB gasoline complex. There is likely to be some additional trade interest seen through the entire energy sector as buyers are focusing on following the gasoline market trend. Summer contracts posted gains from 2 to 3 cents per gallon, with front-month futures testing resistance levels of $1.638 a gallon. A move above this level would set 2015 highs, and potentially draw additional longer-term support back into the market even with extremely large inventory levels.

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

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Rick Kment