Ethanol Blog

Ethanol futures have remained quiet through the holiday week as traders have quickly exited the market before the Thanksgiving holiday with prices remaining nearly stable trading range over the last two trading sessions despite strong moves in surrounding markets.

December contracts posted fractional gains, moving back above $1.50 per gallon following the light losses Monday. The back-and-forth shifts continue to allow markets to remain limited in a narrow range. While traders have taken a hands-off approach to the ethanol market, the lack of trade in other commodity markets had the opposite effect with corn prices falling 3 cents per bushel lower Tuesday, and RBOB gasoline prices surging nearly 10 cents per gallon higher over the last two trading sessions.

Additional volatility may develop early next week, once Thanksgiving buying activity has passed and traders step back into the market. This could draw increased price movement to the ethanol market and bring some stability to the rest of commodity markets.

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

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