As the sun rises, it reveals a story of resilience in the corn market. Overnight, corn prices showed strength, receding slightly from the peak but maintaining a 2 to 3 cents increase as the market eagerly awaited the USDA weekly Export Sales report.
On the previous day, the corn market displayed a remarkable consistency, oscillating within a narrow range for old crop, ending with subtle fluctuations in prices. While May saw a minor dip of ½ cent, July settled without any change. In contrast, new crop prices exhibited a slight upward trend, closing up by ½ to 2 ¾ cents, positioning the December prices at a premium of 35 ¾ cents above the spot.
Anticipated Sales Figures and Ethanol Production
Traders are eagerly anticipating the release of Foreign Agricultural Service (FAS) data, with projections hinting at a range of 800k MT to 1.4 MMT for old crop corn sales. Conversely, expectations for new crop corn export sales are modest, forecasted to fall below 75k MT.
Additionally, the Energy Information Administration (EIA) reported a notable increase in ethanol production, averaging 1.046 million barrels per day during the noted week. This marked a weekly uptick of 22k barrels per day. Simultaneously, ethanol stocks experienced a slight surplus, with an extra 227k barrels bringing the total to 26 million barrels.
Mexico’s Corn Production Projections
In a significant development, the USDA’s Agricultural Attaché released a preliminary corn balance sheet for Mexico for the 2024/25 season. The report indicated a potential surge in corn production, with estimates pointing towards a 2.7 MMT increase to reach 25 MMT. This projected rise is attributed to favorable weather conditions, yield enhancements, and augmented acreage under corn cultivation. Notably, these attaché reports are considered provisional data subject to potential modifications by the World Agricultural Outlook Board (WAOB) before their assimilation into the World Agricultural Supply and Demand Estimates (WASDE) report.
Current Corn Price Movements
In the wake of these developments, market watchers observed the closing prices for corn futures. Notable figures include May 24 Corn settling at $4.39 (a ½ cent decrease), with a current uptick of 2 3/4 cents. Similarly, July 24 Corn remained stable at $4.52 1/4, with the current trend showing a rise of 2 3/4 cents. December 24 Corn closed at $4.74 3/4, up by 1 1/2 cents, and currently displaying a 2 3/4 cents increase. These movements continue to draw attention to the evolving dynamics within the corn market.
It’s crucial to note that the insights and data presented in this article serve a purely informative purpose. As the market landscape continues to shift, investors are advised to remain vigilant and consider multiple information sources before making any financial decisions.
The information provided does not reflect the views of Nasdaq, Inc., and any investment decisions should be made after thorough personal assessment and advice.
