Ethanol Strength Weakens
Traders focused on the post-report losses in corn prices and widespread outside market pressure in energy futures and the stock market. Following the USDA crop report Monday, corn futures replaced moderate gains with strong losses. Nearby futures lost 12 cents per barrel. Nearby ethanol contracts responded with losses of 4 to 6 cents per gallon as traders overlooked potential tight supplies and focused on lower production costs.
Outside market are more focused on the potential shutdown of the government which may create widespread pressure in stock market and energy futures if this game of chicken played by congress continue. With a new month and quarter developing, there could be renewed buyer support seen during coming weeks.