Ethanol futures closed mixed in a moderate range Monday, as front month and deferred futures gained support despite lower corn prices. The production costs of ethanol eroded early in the week. This typically will pressure ethanol prices across the futures market.
But Monday's gains in October futures and 2014 contracts helped to put more emphasis on potential demand stability and inventory reductions. Traders are going to be focusing closely on ethanol production through the upcoming weeks, which could keep prices moving in mixed direction.
At the same time, November and December ethanol contracts posted light losses due to lower production costs. The lack of early week support in energy prices may have a more profound impact in ethanol prices as the week continues. But for now, it seems that traders are looking for longer-term direction.
Rick Kment can be reached at email@example.com
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