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 mandates, and cheaper Brazilian ethanol imports are squeezing margins for producers like POET and Valero. Luna questions whether the USDA's May WASDE report, which projected a 15.8-billion-bushel corn crop, might still be too optimistic given planting delays in the Midwest. Together, they explore whether this is a short-term seasonal dip or the start of a structural shift in the corn market. The episode also touches on the ripple effects for fertilizer stocks, livestock feed costs, and the broader agricultural economy. #Corn #Ethanol #Commodities #Agriculture #CPI #Inflation #USDA #WASDE #POET #Valero #RenewableFuel #BrentCrude #Gasoline #BrazilEthanol #Fertilizer #FexingoBusiness #BusinessPodcast #Economics Keep every episode free: buymeacoffee.com/fexingo