Chicago Board of Trade corn futures ended narrowly mixed on Monday as pressure from depressed margins in the US ethanol sector offset spillover strength from wheat and soybeans, traders said. CBOT May corn settled down 1/4 cent at $3.43-1/2 per bushel. Corn is the main US feedstock for the production of ethanol fuel, and declines in crude oil futures this month have dragged down ethanol profit margins, signaling a slowdown in production of the biofuel and reduced demand for corn.
US ethanol producer POET said it suspended corn buying "at a number of locations" due to weak biofuel demand and is evaluating its production levels. The US Department of Agriculture reported export inspections of US corn in the latest week at 816,634 tonnes, in line with trade expectations for 700,000 to 1,050,000 tonnes.