Commodities: Stock market steals the show

By Rick Kment, Telvent DTN | August 24, 2015

Over the last month, the Dow Jones Index posted significant losses nearing 3000 points, with over 2,000 of those erased in the week of Aug 17 to Aug. 21. Concerns about the devaluing of China's currency and distress in other global economies have created widespread pressure across the market. Worries are that our domestic economy and still-strong healthy demand for gasoline may not be able to maintain the pace previously seen this summer, and could erode through the fall.

Ethanol production has remained strong through late summer, with costs remaining manageable due to cash corn prices hovering below $3.50 per bushel. But continued uncertainty about stock market values, overall economic support and corn production levels will create a lot of uncertainty for ethanol markets in the coming months.

Ethanol prices have remained surprisingly stable over the last month, hovering in an 8-cent trading range, despite crude oil prices falling below $40 per barrel and RBOB gasoline prices moving below $1.50 per gallon.  

 

Gasoline Prices (By Region)

REGION

SPOT

RACK

West Coast

$1.8944

$1.7854

Midwest   

$1.6919

$1.6452

East Coast

$1.4083

$1.6760

Front Month Futures Price (RBOB) $1.4885

 

Ethanol Prices (By Region)

REGION

SPOT

RACK

West Coast

$1.6800

$1.7500

Midwest   

$1.4350

$1.6227

East Coast

$1.5100

$1.7133

Front Month Futures Price (AC) $1.4350