Corn tumbled again this week to as better crop conditions and warmer weather reduced threats to this year’s crop.
Meanwhile, U.S. ethanol production is near a six-month low and stockpiles of the fuel continue to rise. Nearly 40% of all U.S. corn goes to make the fuel, so the market is dependent on robust fuel demand.
Next week, the U.S. Department of Agriculture will release its newest outlook for the crop. Many market watchers are hoping that the USDA will show a drastic cut in acreage and yield projections that corn bulls have been expecting all year.
Thus far, the USDA has shown a robust and large crop despite their protests, keeping prices on a downward track.