- When you look back in time, most blame the gasoline blend wall for US ethanol demand as being the primary reason why US/world grain prices have slumped to their lowest levels for late May since the mid 2000’s. Yet, we all need to remember that an unusual 4 years of below trend US corn yields helped maintain bullish expectations far longer than they should have. Those poor yield years of 2010-2011- 2012-2013 contributed to tight US stocks and encouraged more acres to be brought under cultivation especially in the Black Sea and Latin America. Now that US corn yields appear to be returning to normal where will this take price?
