Corn Futures Decline as USDA Keeps Ending Stocks Unchanged

Corn futures failed to maintain their early session gains after the USDA’s announcement on Tuesday. The agency did not revise its ending stocks projection, leading contracts to close down slightly, with a decrease of 3 cents. CmdtyView’s national average Cash Corn price also fell, down 1 1/4 cents to $4.31 1/4.

USDA Balance Sheet Remains Steady

The USDA’s updated balance sheet showed no changes, indicating that the U.S. carryout is projected at 1.54 billion bushels, which was higher than estimates predicting a 24 million bushel reduction.

World Production and Stocks Insights

On the global front, the USDA made no adjustments to the South American crop estimates, with Argentina’s production at 50 million metric tons (MMT) and Brazil’s at 126 MMT. However, world ending stocks for 2024/25 dropped by 1.37 MMT, which is below average trade estimates. This reduction occurred despite an increase in global production by 1.7 MMT, primarily due to a 1.86 MMT reduction in carryover from 2023/24. Brazil’s production was revised down by 3 MMT, with exports reduced by 2 MMT and domestic use rising by 1 MMT.

Market Activity

In market activity, a South Korean importer purchased 133,000 metric tons of corn overnight, indicating ongoing demand.

Closing Prices for Corn Futures

Mar 25 Corn closed at $4.56 1/2, down 2 1/4 cents.

Nearby Cash was at $4.31 1/4, down 1 1/4 cents.

May 25 Corn closed at $4.70 1/4, down 1 3/4 cents.

Dec 25 Corn closed at $4.54 1/2, down 1/2 cent.

New Crop Cash was recorded at $4.18 3/8, down 1 1/2 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.

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