Corn prices could drop to their lowest levels in more than a decade as coronavirus-related weakness in demand for gasoline pushes the cost of ethanol toward record lows, reports Barron's.
The decline in gasoline demand due to the widespread Covid-19 travel and work restrictions, especially in the U.S., deeply “affects the king of the ag markets—corn,” says Sal Gilbertie, president and chief investment officer at Teucrium Trading.
U.S. motor gasoline demand was at roughly 6.7 million barrels for the week ended March 27, down 25% from just a week earlier, according to the Energy Information Administration.
