Buyers quickly moved back into the ethanol complex Monday morning with strong gains developing in nearby contracts. Front-month November contracts spent most of the Monday session trading 3 to 4 cents per gallon higher, as markets closed with rallying 3.3 cents per gallon, based on firm corn buyer support and aggressive triple-digit gains in crude oil futures.
Continued concerns surrounding global unrest and the situation with Russia and Syria continue to keep the crude oil market in a very short fuse. The potential for global market price shifts to change even more quickly and rapidly over the coming weeks could affect the energy market, but also could directly shift demand and price levels of ethanol markets.
November ethanol futures continue to lead the market higher, settling at $1.55 per gallon with a 3.3-cent-per-gallon rally. Even though December contracts remain at a 6-cent discount, the ability to move price levels in a wide range over a narrow time period continue to create much uncertainty through the entire market.
Rick Kment can be reached at firstname.lastname@example.org
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