The ethanol industry chain is another factor that affects the futures price. The core factors that affect the ethanol industry chain include production cost, supply and demand pattern and the relationship between various links in the industry chain. The change of any one factor may affect the price of ethanol futures. Especially in the market where the price of ethanol fluctuates greatly, the abnormal changes in any link in the industrial chain will have a direct impact on the futures price. Therefore, understanding the basic situation of the ethanol industry chain and the relationship between each link is an important guarantee to correctly predict the future price changes of ethanol.
The last factor is market sentiment. Changes in market sentiment may lead to drastic fluctuations in ethanol futures prices. Different from other financial assets, ethanol is a physical commodity, so its price fluctuation has a wider impact, and market sentiment has a more direct impact on prices. When the market is optimistic about the development prospect of ethanol, the futures price will naturally rise, and vice versa. Generally speaking, the impact of market sentiment on futures prices is difficult to predict, so we need to pay close attention to the market in real time to avoid the risks brought by changes in market sentiment to investment.