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ABN Amro expects a higher long-term corn price, citing growth in ethanol demand, which it says grows about 7 percent a year, although the biofuel sector currently has overcapacity and low margins. The bank notes that US approval of higher ethanol blends is expected to lift production.
Expected ethanol-driven demand growth and recent US blending approval support a firmer corn outlook over the longer term, even as near-term prices remain volatile on US-China trade news.
en.boerenbusiness.nlNiels van der BoomMar 19, 2019After 151 past bullish macro events, Corn moved a median +0.2% over 5 sessions (57% higher; middle half -0.9% to +1.4%), and -0.3% over 20.
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.
