Corn Prices Tumble When Rumors Become Facts

Corn futures tumbled Friday, when the USDA reported that a 1.25 million metric ton sale to an undisclosed buyer following what had been rumored and expected through the second half of the week. The buyer of this corn is suspected to be China, which has been in the rumor mill of buying this size of purchase during the last two days.

The initial news of this market pushed corn futures sharply higher Thursday and quite possibly helped to limit weakness midweek. But once the sale has been confirmed, the market retreated quickly. The 13-cent loss in the corn market Friday also created light unrest in the ethanol market, which posted moderate losses based on the lower production costs associated with weaker corn price levels. This wave in price shifts is quite likely going to ripple through the markets through the first half of next week creating additional market volatility.

(Source: http://www.dtnprogressivefarmer.com/dtnag/view/blog/getBlog.do;jsessionid=A30E6155F5EA8975EEC45FFA2750495C.agfreejvm2?blogHandle=ethanol&blogEntryId=8a82c0bc2eaec4d4012eef03084802eb)