PEIX history over the same time period |
As Neil Koehler stated, there's a temporary pullback in price and he believed it was just that, temporary. Ethanol futures are climbing fast and it appears we've hit the bottom on them.
Other Factors
Beyond just the temporary down swing of Ethanol prices, we know that this is the time of year most companies perform yearly maintenance on their plants so we will likely see supply drop and ethanol prices rise further over the next few months.
Options Expiration day - that's today. Wonder why we have not seen the jump of the last 2 days? This is it. The other piece is there are some profit taking due to a 33% rise in less than two trading days from the trend traders.
Also, with the Ebola scare, the whole market has not helped as the drops are compounded.
However, one other GREAT piece of news for ethanol is corn is falling again and ethanol prices are rising again. We won't see great margins in the future...they're already here! Today. Now would be a good time to get back in if you got out of this stock. With a solid earnings report, this will be back in the 20's range in 30 days.
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