Smaller WASDE corn estimates bullish for corn and ethanol prices

In Washington, the monthly World Agriculture Supply and Demand Estimates reduced its estimate for corn yields and therefore cut its production estimate for the current crop to 13.601 billion bushels, which has in turn had a bullish impact on ethanol prices. Ethanol prices rose 1.45 cents on Tuesday following the report to $1.2820/gal. Corn futures were also supported by the report, but both moves could be short lived as the market absorbs the new report.