Corn Market Recovers Slightly Amid Export News
The corn market ended the week on a positive note, though losses had been notable earlier. Most contracts rose by 2 to 4 cents. July futures fell 19 ¼ cents (4.10%) this week, with December futures down 8 ¼ cents. The nearby CmdtyView national average Cash Corn price saw a gain of 2 ¼ cents, reaching $4.20 1/4.
Export Sales and Market Adjustments
Earlier today, the USDA reported a private export sale of 288,000 metric tons (MT) of corn to Mexico. This included 95,100 MT allocated for the 2024/25 marketing year and 192,900 MT for 2025/26.
Speculators have been adjusting their positions in corn futures and options. As of May 6, they cut back a total of 57,436 contracts from their net long positions, bringing it down to just 13,893 contracts. This marks the lowest level since early November.
Export Commitments and USDA Forecasts
According to the Export Sales data from Thursday, total U.S. corn export commitments reached 60.411 million metric tons (MMT). This figure is 27% larger than the previous year and surpasses the total for each of the last three years. Currently, it represents about 93% of the USDA’s forecast, which typically sees sales around 95% at this time.
Looking ahead to Monday’s WASDE report, analysts anticipate a decrease in Argentina’s corn production by 0.25 MMT from last month, bringing it to 49.75 MMT. In contrast, Brazil’s output is projected to increase by approximately 1 MMT, averaging 126.96 MMT. World ending stocks for the old crop are estimated to fall slightly to 287.65 MMT, while new crop stocks are expected at 297.36 MMT.
Market Closing Prices
May 25 Corn closed at $4.41 1/2, up 2 1/2 cents.
Nearby Cash was $4.20 1/4, up 2 1/4 cents.
Jul 25 Corn closed at $4.49 3/4, up 2 1/4 cents.
Dec 25 Corn closed at $4.42, up 3 1/4 cents.
New Crop Cash was $4.00 3/4, up 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
