Ethanol futures fell the last two trading sessions following building pressure in the corn market. But this was unable to change the trend of higher prices on the weekly chart.
Front-month December ethanol futures gained 1.6 cents per gallon more than last week, to close at $2.408 a gallon. Corn futures increased nearly 7 cents per bushel for the week, despite the moderate pullback seen during the last two sessions.
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Traders seemed to be more focused on squaring positions at the end of the week, before November ends, than to follow the weekly trend on the market. Traders in the ethanol market are going into December looking for stable demand levels through the first two weeks with some support in driving demand as Christmas and New Year's holidays approach.
This could help to draw additional activity into ethanol markets, but most traders will likely continue to focus on following the corn market through the end of the year.
Rick Kment can be reached at firstname.lastname@example.org
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