Ethanol futures posted moderate price bounces early Monday as traders quickly reacted to the 18-cent-per-gallon market tumble which occurred last week. The aggressive market pressure seen through the end of the week has quickly erased the December market rally which seemed to take the market by storm.
Ethanol futures bounced higher Monday as traders try to bring a sense of stability back into the market before the Christmas holiday. January futures led the market higher, bouncing to an increase of 1.9 cents per gallon, and settled at $1.593 per gallon.
Additional market support developed in afterhours trade, indicating that at this point there still remains firm underlying support as buyers step back into the complex. The aggressive move lower in the last few trading sessions is expected to quickly change the trend of the overall ethanol market. However, there is still a lot of emphasis placed on the direction of energy and crude oil markets through the end of the year.
Seasonal market pressure is likely to be seen through the market over the coming weeks, as traders start to move into inventory building mode.
Rick Kment can be reached at firstname.lastname@example.org
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