Ethanol Blog

The ethanol market closed the week at $2.417 per gallon after showing a hint of market stability, despite sharp losses surrounding the market.

No one would have imagined that after posting a 10-cent-per-gallon loss on Monday, the market would rally back to close just 1.6 cents per gallon lower. One may thing that a loss of 1.6 cents per gallon is not quite considered stable. But compared to other surrounding markets, it seems to be a huge win for the ethanol market.

In the same week-long period of time, May corn futures fell to $6.29 per bushel. This accounts for a drop of 66 cents per bushel in price from last week's levels. The RBOB gasoline market at the same time fell nearly 21 cents per gallon, to a weekly low of $2.86 per gallon. Crude oil futures also joined the party of sharply lower commodity markets, falling $4.13 per barrel through the first week in April. In comparison to all of the markets which ethanol markets are measured by, the narrow losses can be considered a win.

Rick Kment can be reached at rick.kment@telventdtn.com