This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Ethanol Volatile as Corn Prices Fall


NEW YORK ( TheStreet) -- Ethanol futures were volatile Monday, at one point the biggest gainer in commodities, amid mixed information on ethanol stocks and corn prices.

Ethanol futures were the top commodities gainer, popping 3.6% to $2.65 a gallon for the June contract, as ethanol stocks dropped 808,000 barrels amid an increase in gasoline usage, according to MaxYield Cooperative. In addition, ethanol plants have been running at 97% of capacity as they take their annual maintenance shutdown, according to MaxYield.

Still, it wasn't long before June ethanol contracts fell 0.3% to $2.643.

"While this is positive," said MaxYield Cooperative analyst Karl Setzer of the drop in ethanol stocks, "U.S. gasoline demand on a whole is down 1.6% from a year ago."

This, as the markets prepare for possible gains in corn, which could impede on ethanol producer margins and output.

"Market structure in corn suggests more upside," said Waverly Advisors strategist Andrew Barber.

According to Benson Quinn Commodities, the eastern portions of the Midwest are expected to receive some periodic moisture over the next couple of weeks -- over-moist soil could render it more difficult for farmers to sow new seeds. The western corn belt on the other hand, is expected to present better sowing opportunities this week.

According to ANZ Research, net long speculative positions for corn increased by 10,000 contracts for the week ending Apr. 26.

Still, "the 10,000 contract increase in corn net longs is the smallest increase in a month and may well indicate investor enthusiasm for grains is running out of steam," ANZ Research cautioned in an investor note.

Corn futures for July delivery were falling 1.1% to $7.48 ¼ a bushel.

Oil and gas giant Chevron (CVX - Get Report), a buyer and blender of ethanol, was flat at $109.49. Royal Dutch Shell (RDS.A - Get Report), an ethanol producer, was up 0.6% to $77.92. Pacific Ethanol (PEIX - Get Report) was falling 5.2% to 45 cents. Ethanol play, The Andersons ( ANDE ) was falling 0.5% to $49.40.

Grains processor Corn Products International (CPO) was rising 2.5% to $56.47, grains transporter Archer Daniels Midland Company (ADM - Get Report) was flat at $37.04 and corn processor MGP Ingredients (MGPI - Get Report) was down 1.5% to $8.60.

>>Search for Highest Dividends by Rate or Yield

More on Earnings
Today's Top Earnings
Earnings Calendar

-- Written by Andrea Tse in New York.



>To contact the writer of this article, click here: Andrea Tse.

>To follow the writer on Twitter, go to Andrea Tse.

>To submit a news tip, send an email to: tips@thestreet.com.

Copyright 2011 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
ADM $48.61 0.83%
ANDE $43.34 -0.21%
CVX $109.70 -0.15%
MGPI $14.10 -3.10%
PEIX $11.86 -1.40%

Markets

DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs