CBOT corn falls sharply as ethanol production slides

Source: Xinhua| 2019-02-01 06:40:17|Editor: yan
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CHICAGO, Jan. 31 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures settled lower on Thursday, with corn losing more than 1 percent as U.S. ethanol production fell to the lowest level in three weeks.

The most active corn contract for March delivery was down 4.75 cents, or 1.25 percent to settle at 3.765 U.S. dollars per bushel, March wheat was down 0.25 cent, or 0.05 percent, to close at 5.165 dollars, while March soybeans were down 5.75 cents, or 0.62 percent, to settle at 9.1525 dollars per bushel.

Ethanol production in the seven days that ended on Jan. 25 declined to the lowest level in three weeks, according to the data released by the U.S. Energy Information Administration. Corn is the raw material for ethanol.

Profit-taking after a sharp rise in the previous session put additional pressure onto corn prices, said market watchers.

Terry Roggensack, an analyst with The Hightower Report, argued that corn still has some fundamental support.

"In general, a lot of cold weather across the Midwest is going to keep corn consumption a bit higher than traders have anticipated," he said.

CBOT wheat posted slight losses on Thursday, and soybeans reversed its upturn in the morning, ending in the negative territory as traders awaited the outcome of the U.S.-China trade talks in Washington.