Corn futures dropped on Thursday as a consequence of U.S. lawmakers urging the nation to apply changes to the mandate for alternative sources of fuel, which pulled down demand for corn, Bloomberg reports.
Republican and Democratic political leaders are planning to solicit the administration of President Barack Obama to reduce the U.S. mandate for ethanol, which derives from corn, U.S. Representative Steve Womack, an Arkansas Republican, told the news source in an email. The losses pulled down the agricultural commodity from record highs notched earlier this week.
"If they drop the mandate or reduce it, it's going to be negative for corn," president Darrell Holaday with Advanced Market Concepts in Kansas told the news source. "We knew when we passed this policy that this was going to happen some day."
At 2:05 p.m. on Thursday, corn futures gained 0.22 percent, a 0.0175 cent gain to $8.0225 per bushel.
Reuters reports the worst drought to impact the Midwest of the U.S. in nearly 60 years is only going to get worse as the summer proceeds, according to climatologists.
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