US corn futures fell 2.4% to their lowest level in 3-1/2 years on Wednesday, with falling prices for crude oil cutting into demand from the ethanol market, traders said.
A crumbling cash market for corn added to the pressure in the futures contracts as dealers in the country slashed bids they were offering farmers for their grain due to expected cuts in production at ethanol plants.
The ethanol market, which accounts for about 39% of US corn usage, has been staggered by the sharp drop in energy prices stemming from the global coronavirus pandemic.
Oil prices plunged on Wednesday, with US crude futures hitting an 18-year low and Brent a 16-year low as Goldman Sachs said lockdowns to counter the coronavirus pandemic raised the prospect of the steepest-ever annual fall in oil demand.
Wheat and soyabean futures were stronger, bouncing from recent lows as the rippling effects of the coronavirus spread were seen as boosting demand.
At 11:21 a.m. CDT (1621 GMT), Chicago Board of Trade May corn futures were down 8-1/2 cents at $3.35-1/2 a bushel. Prices for the most-active contract bottomed out at $3.32, the lowest since Sept. 30, 2016, early in the trading day.
CBOT May soft red winter wheat was up 9-1/2 cents at $5.08-3/4 a bushel. The May K.C. hard red winter wheat contract was 13-3/4 cents higher at $4.46 a bushel.
CBOT May soyabean futures were 3 cents higher at $8.27 1/4 a bushel.
Comments
Comments are closed for this article.