Ethanol futures prices remain mixed in an extremely narrow trading range following differing market directions Thursday. Strong follow-through support in the crude oil and RBOB gasoline market helped to draw light buyer interest back into front-month December contracts.
December ethanol prices moved 0.5 cent per gallon higher with after hour trade posting gains as high as 2.3 cents per gallon during the afternoon. This focused on 6-cent gains in the RBOB gasoline market and continued support in crude oil prices. But a strong sell-off in the corn futures pushed prices 5 to 6 cents per bushel lower, and left most ethanol contracts steady to 1.5 cent per gallon lower at the end of the session. The lack of long-term support in the market continues to be driven by production costs and moves in corn prices. Volatility will continue to be seen through the next several trading sessions and could spark increased buying support. But this movement will be based on front-month contracts.
Rick Kment can be reached at email@example.com
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