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 email@example.com
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