Corn Market Shows Mixed Trading as USDA Releases Acreage Estimates

The corn market is trading with contracts showing varied performance, where nearby contracts are slightly higher while new crop futures are lower. On Wednesday, prices dipped slightly, with some contracts falling by up to 3 cents by the close. CmdtyView’s national average Cash Corn price decreased by a penny, settling at $4.46.

USDA Acreage Estimates Reflect Increased Planting Plans

Today, the USDA’s Outlook Forum reported corn acreage at an estimated 94 million acres, marking an increase of 3.4 million acres compared to last year. It’s crucial to highlight that this figure is not derived from a survey; details from the March Intentions report will provide more accurate estimates. The USDA is employing a weather-adjusted trend yield of 181 bushels per acre, projecting a carryout of 1.965 billion bushels.

Impact of Tariffs and Ethanol Production on Market

In political news, President Trump announced that potential tariffs on Mexico and Canada are set to take effect on April 2, pushed back from the initially scheduled March 4 deadline.

According to Wednesday morning’s EIA report, ethanol production fell by 3,000 barrels per day in the week ending February 21, totaling 1.081 million barrels per day. Additionally, stocks witnessed their most significant weekly increase since January 2023, climbing by 1.353 million barrels to 27.571 million barrels. This rise was primarily driven by a record-high increase from the Midwest, reaching 11.16 million barrels, alongside a 540,000-barrel increase in the Gulf region.

Upcoming Export Sales Data and International Purchases

This morning’s Weekly Export Sales data is anticipated, with traders predicting old crop corn bookings between 0.9 and 1.65 million metric tons (MMT) for the week of February 20. New crop sales are estimated to fall between 0 and 100,000 metric tons.

Notably, South Korean importers secured a total of 198,000 metric tons of optional origin corn overnight.

Market Pricing Overview

Pricing for March 25 Corn closed at $4.78 1/4, down 1 1/2 cents, but is currently up by 1/4 cent. Nearby Cash was priced at $4.46, down 1 cent. Meanwhile, May 25 Corn closed at $4.93 1/2, a drop of 3/4 cent, and is now up 1/2 cent. December 25 Corn settled at $4.67, down 3 cents and is currently down 1/2 cent. New Crop Cash registered at $4.35 1/2, also down 3 cents.

On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy
here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.