Today's M^3 - Corn Futures Down 13% for the Week

This past week corn futures have been getting cornholed, suffering a 12.8% decline. After touching their all time high of nearly $8 a bushel, they are now rapidly approaching their lows of the year, as evidenced by the following chart (can you say whipsaw? I knew you could...:



According to this article on agriculture.com, the main culprit for the drop in price is a corresponding drop in oil prices. The expectation is that lower oil prices will soften demand for ethanol.

Corn has been the worst performer for the week, followed by Lumber which was already down significantly for the year. I expect to be featuring lumber in one of these Major Market Move posts in the not-too-distant future.



(Click on the images for a larger view.

Click here for the current chart of corn futures.

Click here for the current performance of commodity futures. )