Ethanol Blog

Ethanol Starts 2015 on Weak Note

Rick Kment
By  Rick Kment , DTN Analyst

Strong pressure quickly developed through the first full week of January which left the market under pressure going into 2015. Front-month February futures fell 9.7 cents per gallon lower for the week, which significantly narrowed the price premium ethanol had held over the RBOB gasoline market, and also evaporated the spot month premium which had held through the last several months.

The focus through early January is no longer on tight supplies and the need to gain access to immediate needs, but it is focusing on expected sluggish demand as well as weak gasoline prices. Additional uncertainty is expected to be seen through the next few days as traders focus on continued pressure in energy markets.

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

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