Corn demand is expected to continue to suffer as oil prices continue to move lower. Van Ahn and Company market analyst Kristi Van Ahn says the ethanol economics just don’t work. “Unleaded gasoline at the beginning of the year was almost $2 on futures. It’s now 68 cents. When you have unleaded gasoline where it is and ethanol, you’re at margins of 65 to 80 cents a bushel on ethanol losses,” says Van Ahn. “We’re hearing some ethanol plant shutdowns and basis is widening.” Basis bids for corn at ethanol plants in the Northern Plains have been fairly stable, with basis levels ranging from 40 to 62 cents under the May futures contract. Cash corn prices range from $2.75 to $2.98 per bushel.
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