Ethanol Blog
Rick Kment DTN Analyst

Monday 04/01/13

Corn Markets Falling Fast

As if corn moving 40 cents lower and locked from additional trade by limit-down losses on Thursday was not enough, traders took a bearish attitude early Monday.

Monday was the first chance that traders had to step back into the market due to markets being closed Friday for the Easter weekend. After the dust settled following markets closing Monday, the front-month corn futures market posted a 93-cent-per-bushel loss over the last two trading sessions.

April ethanol futures tumbled 22 cents per gallon lower in the same time period, breaking through the recent lows seen in February.

The tone of both the corn and ethanol market remains extremely bearish early in the week, but it is uncertain just how much pressure is left in the market. Although corn availability remains better than expected, there are a lot of unanswered questions about the upcoming growing season that could quickly turn the market around. This early April pressure could quickly make the markets extremely volatile through the rest of the month.

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

Posted at 4:31PM CDT 04/01/13 by Rick Kment
Comments (3)
Ethanol to Corn margin must be positive; if wide enough to encourage the use of the extra 400m bushels of corn by firing up a few plants. Margins needed for staffing and working capital. Ethanol is the one sector that can put about half of this extra corn supply to work, and keep prices leveled. Feed side cannot grow on a dime, exports are in competition...ethanol last sector left to pick up the slack.
Posted by Eddy Lahens at 5:49PM CDT 04/01/13
Once the oil companies own the vast majority of these plants, none of it will matter as they will be in control of it all. Cheap corn is what these plants want., there margins will eventually come in line, if not they will make it up elsewhere. My hat is in the ring for the farmer, not the ethanol circus.
Posted by GWL 61 at 11:36AM CDT 04/02/13
Most don't believe there is 400m bushel extra to worry about.
Posted by Raymond Simpkins at 11:56AM CDT 04/02/13
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