The two markets that typically have the greatest impact on the direction of the ethanol market were at odds Tuesday. Corn futures prices fell under pressure through the entire session. Traders seemed more than willing to back away from early gains seen Monday. Also with the release of the prospective planting report scheduled for Thursday, traders are starting to adjust positions ahead of the report.
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If that was not enough, the market will be closed Friday for Easter Break. This puts the last trading session of the month and quarter on a USDA report day. These report days don't need any other reason than "being USDA report days" to ooze with volatility.
On the other side of the equation is the RBOB gasoline market. RBOB gasoline prices posted the first significant rally in nearly a week, fueled by aggressive gains in the crude oil market, which has gained nearly $4 per barrel in four trading sessions, and a triple-digit rally in the stock markets Dow Jones Index. In the end, the falling corn market price won the direction of the ethanol market, but only by the slimmest of margins.
Front-month ethanol futures fell just 0.3 cents per gallon Tuesday. But the potential for additional shifts is only hours away when markets open once again.
Rick Kment can be reached at firstname.lastname@example.org
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