Ethanol Blog

Corn prices posted double-digit losses Monday based on expectations that more planting will take place in the next two weeks.

July corn futures lost 24 cents per bushel Monday as traders seemed to grow tired of the previous concerns about cold, wet weather. Overall weather forecasts for most of the Corn Belt are drier for the next two weeks. Combined with warm weather expected to hover over much of the area, traders are now focused on the potential to rapidly get back into the fields.

In the most recent crop progress report, corn showed a significant rally in planting numbers last week. Although planting is still much behind average, the potential for a fast and furious pace is limiting corn market support.

This is causing additional weakness in the ethanol market early in the week which overlooked moderate gains in the energy complex.

Rick Kment can be reached at rick.kment@telventdtn.com

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