US corn prices drop as crop conditions improve

21 July 2008 23:49  [Source: ICIS news]

HOUSTON (ICIS news)--US corn prices fell sharply on Monday amid good weather in the US midwest and improving crop conditions for the main US ethanol feedstock.

Prompt corn in Chicago closed at $5.89/bushel (€3.71/bushel), down by 20 cents from $6.09/bushel on Friday. Corn traded at $6.63/bushel a week earlier and $7.35/bushel a month ago.

The US department of Agriculture (USDA) on Monday said 65% of the US corn crop in 18 key-producing states was in good/excellent condition in the week ended 20 July.

That figure is up from both 64% a week earlier and 62% in the comparable week one year ago.

The US is expected to produce 11.7bn bushels of corn in the 2008-09 crop year, according to the USDA, which estimates one third of it will be used in ethanol production.

The US is the world’s top ethanol producer with capacity currently estimated at 9.3bn gal at 161 bio-refineries, according to the Renewable Fuels Association (RFA).

($1 = €0.63)

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By: William Lemos
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