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The national average corn basis has fallen from its early-March peak as ethanol plants cut production or went offline. Gasoline below $1 per gallon has pushed ethanol prices down and plant margins under pressure, leading plants to pull or lower corn bids.
With nearly 40% of U.S. corn going to ethanol, weaker ethanol demand lowers local cash corn bids and basis, pressuring corn prices for feed buyers.
dtnpf.comMary KennedyMar 30, 2020After 301 past bearish macro events, Corn moved a median -0.1% over 5 sessions (47% higher; middle half -2.2% to +1.3%), and +0.2% over 20.
After 565 past bearish macro events, Crude Oil (WTI) moved a median -1.4% over 5 sessions (41% higher; middle half -5.9% to +3.0%), and -0.5% over 20.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
