Weaker Ethanol Demand to Undermine Corn Prices – Analyst (DE) (AGCO) (CNH) (CORN)

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The recent rally in corn could soon come to an end, according to analyst Michael Cox of Piper Jaffray. He sees weakness in the ethanol industry potentially hitting demand. As the prices of corn tracks higher, we will likely see the "first glimpse of demand destruction." As a result, Cox thinks momentum in corn could stall out after the release of WASDE’s report on July 11th.

Cox is also cautious of farm equipment companies, including Deere & Company (NYSE: DE) AGCO Corporation (NYSE: AGCO) CNH Global NV (NYSE: CNH)

Teucrium Corn ETF (NYSE: CORN) is higher by 2.56 percent intraday on Thursday. The Corn Dec. futures contract is up 33 percent since hitting $5.06 on June 15, according to data from Bloomberg.

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