Spot ethanol prices plunged in early trade as investors exited long positions across several commodity markets, including corn and gasoline, a trade source said. Overall activity was thin, with very little talked other than at the New York Harbor and the Argo terminal near Chicago.
"It's a crowded trade -- corn and ethanol have taken a life of their own," said the source. He linked the sell-off in ethanol to the broader turmoil across markets following the Federal Reserve's decision to withdraw bond buying program will be scaled back starting later this month through the first half of next year.
George Orwel can be reached at firstname.lastname@example.org.
© Copyright 2013 DTN/The Progressive Farmer. All rights reserved.