Ethanol futures posted limited market movement Tuesday afternoon with prices hovering in a narrow trading range, as nearby contracts fell just 0.6 cent per gallon while deferred contracts fell 0.2 cent per gallon.
November contracts fell to $1.60 per gallon as the market has been recently been capped at that level, given the lack of support in the corn and gasoline market over the last week.
A combination of losses through the last week in the corn market, which fell about 8 cents per bushel, and moderate seasonal pressure starting to finally develop in RBOB gasoline and crude oil markets trickling into the complex appears to be limiting any upward market support through the end of the month.
Trade activity through the ethanol market is likely to remain limited in the next several days as traders remain focused on not only the direction of corn markets, but the inventory levels of gasoline and ethanol markets. This could bring some additional price shifts to nearby contracts, but seasonal pressure is likely to continue through the end of the year as long-term pressure is likely.
Rick Kment can be reached at email@example.com
© Copyright 2016 DTN/The Progressive Farmer. All rights reserved.