Ethanol prices have tumbled lower during the last two weeks, falling nearly 6 cents per gallon. Although the complex continues to remain stuck in the wide 10-cent trading range seen during the last two months, the focus on lower production costs has overshadowed overall seasonal support across the complex.
June ethanol futures are trading at $1.43 per gallon, and likely may see some additional moderate but consistent market shifts through the next several trading sessions.
Corn prices bounced higher Tuesday, but the overall lack of support through the grain market has continued to affect overall corn prices. July corn futures have fallen more than 25 cents per bushel in the last two weeks. This is not only a concern to the overall support in the market, when it comes to production costs of ethanol, but overall demand for ethanol and corn remains uncertain through much of the summer.
Rick Kment can be reached at firstname.lastname@example.org
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