Ethanol futures trickled fractionally lower Monday with prices slipping 0.6 to 0.8 cents per gallon. The overall lack of market direction seen through the entire complex continues to focus on recent pressure in the corn market and the inability for crude oil traders to bring much support back into the complex.
April futures slipped 0.8 cent per gallon, posting the only contract month to deviate from the 0.6 cent per gallon move. Although long-term demand is expected to remain firm through spring and summer, the focus on recent pressure in corn prices and the overall lack of aggressive buyer support in the entire energy complex is keeping most traders on the sidelines. The fact that crude oil futures continue to be contained within the narrow $2-per-barrel trading range over the last two months is keeping most traders from aggressively entering any energy, gasoline or ethanol contracts. Ethanol futures are expected to remain contained within a 10-cent trading range between $1.45 and $1.55.
Rick Kment can be reached at firstname.lastname@example.org
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