Corn futures plummet as “big money is getting out”; profit-taking improves ethanol spreads

The price of corn futures has dropped to $5.65 for the September 2008 contract, down from a high of nearly $8.00, although the July 2009 contract remains at $6.40 on the CBOT. Industry buyers have said that, because they buy corn 1-2 months ahead, they are still buying “$6 corn”, but said that prices have definitely eased. “Some of the big money is getting out,” John Ruplinger of South Dakota Wheat Growers told the Chicago Tribune. They are bailing, so we are seeing sharply lower price levels. And it looks like we’ve got some room to go lower.”

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