Ethanol Blog

Both ethanol and RBOB gasoline futures closed in a narrow range, with prices potentially described as falling on either side of unchanged. The lack of movement in each of these movements is something that causes many to scratch their heads looking for even more answers.

But these answers were hard to find on Tuesday. The normal markets that give direction to both the ethanol and RBOB gasoline markets tumbled hard Tuesday. Corn fell 9 to 10 cents per bushel and crude oil futures more than $2 per barrel lower during the session. Crude oil futures have posted losses each of the last two sessions.

Typically both ethanol and RBOB gasoline follow the direction of these two markets. But the uncertainty of whether these shifts are sustainable keeps most sellers from quickly jumping into the market.

Front-month September ethanol futures ended unchanged with all other nearby contacts stuck in a range from 0.9 cent per gallon lower to 0.6 cents per gallon higher. RBOB gasoline futures closed in an even tighter range from 0.6 cents lower to 0.5 cents higher. Lack of direction could spark widespread market movement during the next couple of days. But for now traders are stuck in stability.

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

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