Ethanol futures remained undeveloped in a narrow trading range as front-month February futures led the market higher with a 0.2-cent-per-gallon gain, while the rest of the complex posted fractional losses. Front-month futures closed at $1.492 per gallon, as markets appear to be trying to find some stability through the end of the month.
Front-month February futures have established a short-term range between $1.47 and $1.50 per gallon over the last three weeks, which helps bring some underlying market calmness back to what has been an extremely wild market.
The focus on inventory building and corn market stability is helping to limit the previous volatility in the ethanol futures market that was so evident through the end of 2016. There still continues to be a lot of attention being pushed to the crude oil and RBOB gasoline market moves, and just how much support may develop over the next two months.
Rick Kment can be reached at firstname.lastname@example.org
© Copyright 2017 DTN/The Progressive Farmer. All rights reserved.