Ethanol futures continue to erode lower as prices have continued to move below $1.50 per gallon and has not moved to the lowest price since Sept. 20 in continued front-month future contracts.
The overall aggressive price shift was most recently focused on the build in ethanol stocks through the end of last week and growing production levels across the country.
Ethanol futures prices have fallen nearly 30 cents per gallon in the last month, as traders have quickly liquidated positions based on the previous expectations of tight supplies and growing end-of-year demands. But now with supplies building and strong production still holding on, there is additional pressure potential developing across the market even when energy markets have started to rebound.
It is expected that support levels of $1.40 per gallon will be the next solid market level at which prices may find sellers may find resistance, but before that point, trade will continue see a choppy pattern based on overall direction of energy and corn market moves.
Rick Kment can be reached at email@example.com
© Copyright 2017 DTN/The Progressive Farmer. All rights reserved.