The corn market has seen increased volatility in the past month with some abrupt swings. Growing concerns for the arrival of La Nina in the Midwest and a South American harvest that came in well below previous expectations increased managed money flow into multiple commodity markets, but evaporated in three days in mid- to late June. &nbsp;Other contributers to market volitility were the recent rally of the U.S. dollar due to growing concerns amoung investors about Britain&rsquo;s exit from the EU. The June 10 USDA&rsquo;s WASDE report gave insight into the demand for this year&rsquo;s corn crop. Old-crop export values increased by nearly 100 mln/bu along with a 5 mln/bu increase in import values,&nbsp; resulting in old-crop carryout decreasing by 95 mln/bu. That lead &nbsp;to ending stocks declining from 1.8 bln/bu in May to 1.7 bln/bu in June.&nbsp; This decreased carry-in for new crop, along with new-crop export values projected to increase by 50 mln/bu resulted in a decrease in new crop carryout from &nbsp;last month&rsquo;s report that projected 2.153 to 2.008 bln/bu. Brazil observed a decrease in old crop exports by about 3.5 MMT and a decrease in new crop exports by 1 MMT. This was a result of a drop in old-crop production of nearly 6 MMT due to unfavorable growing weather conditions for Brazil&rsquo;s second corn crop.&nbsp; On tops of that, Brazil also has been dealing with with political and economic turmoil. Argentina weather woes had a major impact on its soybean production which spilled over into global corn values.
Nonetheless, this year much volatility is expected due to seasonal tendencies which warrant investment dollars to flow into agricultureal commodities. This can be both positive and neagtive for ethanol processors and corn producers, alike. Any weather concerns or scares will reel this market in what will seem like unjustified price levels but one can take advantage of those opportuniteis. Keep in mind the ethanol processor should be focussed on margins not price direction of one commodity.&nbsp; Below illustrates the volatility this corn market can exhibit; comparing this year&rsquo;s new crop to last year.
Comments in this article are market commentary and are not to be construed as market advice

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The corn market has seen increased volatility n the past month with some abrupt swings. 

Corn prices bounce up and down during last month

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