Ethanol Blog

Ethanol Weakens on Corn Market Low

Rick Kment
By  Rick Kment , DTN Analyst

Ethanol futures prices turned sharply lower Tuesday as steady market pressure in corn left buyers looking for additional market pressure. December corn futures lost 4 cents per bushel Tuesday, but the combined shift lower through the week is now 11 cents per bushel.

This is posting new contract lows and could spark additional pre-harvest market pressure. There is very little additional demand support expected to develop over the next two months with the combination of old crop corn still in storage and a record corn crop in the field. Ethanol futures lost 6.2 cents per gallon, breaking quickly away from the $2-price range. The expectation of additional weakness through the corn market should draw additional pressure into ethanol futures and spot markets as the week continues.

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

(ES)

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