Ethanol industry looking up
So does this mean we are all done blaming "Big Ethanol" for starving children in Africa?Corn's cash price was $5.21 a bushel late last month in Aberdeen. In late June and early July, it surpassed $7.
"Then the past couple of years it just went wild."
Now it's taming down. The futures price is $2.20 a bushel less than it was three weeks ago, Schock said.
The wild prices probably had more to do with market speculators than supply and demand, Luitjens said. Some of that speculation money is now leaving the corn market, causing the price to drop, he said.
"Some of the big money is getting out," echoed John Ruplinger, corn and soybean merchandiser for Aberdeen-based South Dakota Wheat Growers. "There's a lot of liquidation of those profit takings. They are bailing, so we are seeing sharply lower price levels. And it looks like we've got some room to go lower."