After setting new contract highs last week, the December corn futures market has started to show some wear with double-digit losses Wednesday following the long holiday weekend.
Overall, there is very little, if any, fresh news circulating through the market about either supply or demand issues concerning the corn crop or feed or ethanol demand that has not been extensively covered during the last two months.
This is creating pressure for commercial traders which are focusing on taking profits following the recent run-up in price levels. The noncommercial side of the market may not be far behind, which could lead to additional price movements during the near future.
Ethanol contracts posted losses of 3.5 to 4.4 cents per gallon with increased concern that additional pressure may continue to develop. Front-month futures fell to $2.523 per gallon, which is the lowest price since the last full week of July.
Growing uncertainty is expected to continue to be seen during the next couple of days in the corn and ethanol markets.
Rick Kment can be reached at email@example.com
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