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Crude oil's sharp decline over the past month is weighing on corn futures. Ethanol margins have been squeezed, reducing the support corn has received from ethanol demand in recent years.
Lower crude reduces ethanol profitability and thus demand for corn used in ethanol, pressuring corn prices unless crude finds a floor.
rrfn.comCarah HartNov 30, 2018After 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, WTI moved a median -1.4% over 5 sessions (41% higher; middle half -5.9% to +3.0%), and -0.5% 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.
