Corn prices declined again, taking a chunk out of its weekly gain.
Bloomberg reported that corn for December delivery fell 0.9 percent to $3.4175 a bushel on the Chicago Board of Trade by 6:14 a.m. Analysts expect that prices will rise 5.7 percent this week, the biggest weekly gain since the last week of May 2013.
The U.S. government raised harvest expectations again this week and crude oil prices dropped again, which may have contributed to the decline in the price of corn. The most recent estimates have U.S. farmers harvesting 14.54 billion bushels of corn this year, up from the already record-setting estimate from the Department of Agriculture last month of 14.395 billion bushels.
Inside Futures reported that the slower than expected pace of ethanol production is also keeping corn supplies high. The weekly ethanol report issued on Wednesday showed an increased last week as the U.S. produced 264,894,000 gallons. This was up from the 259 million gallons produced in the week before. Despite the increase, ethanol production is still behind USDA expectations. Ethanol production should have required 95 million bushels of corn, but failed to reach that amount.
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