Ethanol Blog

Ethanol futures have continued the two-week market slide seen in all ethanol futures trade. This has added even more market weakness through the complex with traders unable to build on the momentum of outside markets.

In the same timeframe, that ethanol futures have fallen 6 cents per bushel, corn markets have rallied 16 cents per bushel, and RBOB gasoline prices have moved 8 cents per gallon higher.

The seasonal support in the energy market has continued to add buyer support back into the complex, but so far, these gains have been lost on the ethanol market that has focused on growing supply levels and the ability that corn stocks will be able to meet current and expected demand.

Ethanol prices still are showing a net positive move from market lows set in early April, but prices are still 3 cents lower than April 1 levels. The concern that buyer interest will continue to be hard to find through the next couple of months is widening the price premium RBOB gasoline markets currently hold. This may add even more uncertainty in early May as traders continue to adjust to more volatile market shifts in the coming weeks.

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

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