Corn: In 2018-19, ethanol production accounted for 38% of corn demand; but like gasoline, ethanol demand was hit by the global pandemic in 2020 and production remains lower than pre-coronavirus levels. Corn prices, however, are showing no hint of bearish regret as exports have taken up the baton in late 2020 and pushed corn prices to new 1-year highs. March corn closed up 14 cents last week at $4.37 1/2, near its contract high and continuing to look bullish from a technical point of view. March corn prices have been in such a strong uptrend that prices have held above their 30-day average since mid-August. The contract high of $4.39 1/2 may offer some resistance, but there is a larger challenge waiting at $4.76, the high of the March contract in 2019. So far, the trend in corn remains up.
Todd Hultman can be reached at Todd.Hultman@dtn.com
Comments above are for educational purposes and are not meant to be specific trade recommendations. The buying and selling of grains and grain futures involve substantial risk and are not suitable for everyone.
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