Ethanol Blog

Ethanol Markets Create Stability

Rick Kment
By  Rick Kment , DTN Analyst

Despite all of the hype and drama seen through outside markets, which are posting moderate to aggressive losses in most commodity and financial markets Monday, the ethanol market created a rare hint of market stability. Traders moved very little away from previous levels, despite the tidal waves of pressure seen almost everywhere else one looked.

Ethanol futures were limited to fractional gains, of 0.2 to 0.4 cents per gallon, although some would say that these are not impressive gains.

The ability to close higher when nearly all other markets got swept away by economic and commodity market support concerns goes a long ways in understanding just how well-rooted the ethanol market is in fundamental support during late 2015.

This stability could create a significant benefit for the ethanol futures market through the end of the year as traders so far have been unwilling to aggressively chase outside markets or even focus primarily on production costs like seen in previous years. The market stability could be the biggest advantage the ethanol complex has to draw additional trade interest into the market during the next few months.

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

(ES)

Comments

To comment, please Log In or Join our Community .