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Why Corn Prices Are Falling as Ethanol Demand Weakens
Corn futures have dropped 1.6 percent in the last five days, continuing a broader slide that has pushed prices below $4.55 per bushel. In this episode, Lucas and Luna drill into the specific driver behind this move: collapsing ethanol demand. With the 10-year breakeven inflation rate holding at 2.40 percent and the April CPI showing a 0.6 percent month-over-month increase, the macroeconomic backdrop is tightening consumer budgets and slowing fuel consumption. Lucas explains how ethanol accounts for roughly 40 percent of total US corn demand — and why lower gasoline consumption, flat blending…
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