Soaring corn futures and stagnating oil prices spell disaster for the U.S. ethanol sector this summer. A repeat of the industry's financial troubles from a few years ago cannot be ruled out. US corn futures have soared as evidence has mounted that drought conditions will devastate this year's crop. Front-month corn futures have jumped 15 percent since the end of June. Oil, meanwhile, has found upside resistance at the $100-a-barrel mark. Gasoline prices have probably already hit their year-high, since the peak demand season is already underway.
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