Ethanol Blog

For those of you that have ventured into having a garage sale in the past are familiar with that time at the end of the sale when customers are scarce and buyers are even more difficult to come by. This is especially true the last couple hours, when all the bargains have been had, and it is time to clean up.

The last few days in commodity markets, including energy, corn and ethanol markets, fits nicely in that pattern. Corn markets are going absolutely nowhere. Closing prices since Nov. 1 have been contained within a 2-cent trading range. This type of range can typically be seen in minutes of a moderately-traded corn market. On the other hand, other markets seem to be posting clearance prices, but are still unable to gain much attention.

RBOB gasoline prices fell nearly 12 cents per gallon over the last week, crude oil futures tumbled nearly $5 per barrel, and ethanol prices lost 10 cents per gallon. The lack of support is evident in the market, which could cause additional pressure over the near future.

But don't count this market down and out just yet: Longer-term support is expected to redevelop, just not now, or likely in the immediate future.

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

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