Two-year bear market in corn? Futures drop to $3.75

May 3, 2010 |

In South Dakota, Bloomberg News is reporting on the potential for a long-term bear market in corn, after POET CEO Jeff Broin said that only increased ethanol production could absorb additional corn expected from increasing yields, and added that POET is expecting to see increased corn supply for at least the next two years.

Corn futures have dropped to $3.75 in futures trading at the Chicago Board of Trade on bearish sentiment, despite a steady rise in ethanol production and predictions that ethanol demand would cause large increases in corn prices.

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