In Chicago, corn futures were down 3.50 US cents, closing at 454.25 US cents/bushel for May futures. The later futures were also under pressure, while individual contracts further away held somewhat firmer.
From a trader's perspective, bearish impulses clearly dominated at first. A significant fall in the price of crude oil by USD 2.51 put pressure on the ethanol sector and dragged corn down with it. At the same time, the US Department of Energy reported a decline in ethanol production of 41,000 barrels per day, which further dampened demand expectations. Although a reduction in inventories of 1.179 million barrels provided some support, this was not enough to reverse the negative sentiment. Currently, crude oil prices have already risen significantly again.
It was only at the close of trading that buyers took hold again and lifted prices slightly from the day's lows. Fundamentally, however, the market remains cautious: although corn processing in February was slightly up on the previous year, it was significantly down on January. The 7 million bushel drop in ethanol consumption in the current marketing year is also having a negative impact.
In view of the upcoming export figures, traders are expecting solid old crop sales, while new business is likely to remain manageable. Restraint could continue ahead of the long weekend. June also lost 2.75 € to 206.75 €/t on Euronext.
