A combination corn markets tumbling 10 cents per bushel lower Tuesday afternoon and RBOB gasoline prices falling 1 to 3 cents per gallon in nearby contract months led ethanol futures to step back from the recent surge higher seen over the last three trading sessions.
Ethanol futures prices have moved nearly 8 cents per gallon higher in the previous three trading sessions, moving over $1.52 per gallon Monday. The most recent market pressure led to October contracts falling 1.5 cents per gallon Tuesday, while deferred contracts posted much more aggressive losses, falling as much as 4 cents per gallon. The overall lack of support in the complex is looking at current lack of support in the market, but also is much more focused on potential pressure that may quickly develop over the coming weeks once this most recent support fails to hold the current barriers together that are keeping markets stable.
Rick Kment can be reached at firstname.lastname@example.org
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