Market Movement Overview
As the week progresses, corn futures have experienced a downward trend, with fluctuations ranging from 3 to 3 ¾ cents by midday on Wednesday. May saw a steeper decline of 5 cents earlier in the day, indicating a volatile market sentiment among traders.
Ethanol Production
Recent data from the Energy Information Administration (EIA) revealed that ethanol output surged to an average of 1.054 million barrels per day for the week ending on 3/22. This marked a significant uptick from the previous week’s 1.046 million barrels per day and reached a 3-week high. Moreover, ethanol stocks rose by 97k barrels during the week, reaching a total of 26.09 million barrels.
Export Expectations
Traders are eagerly awaiting the USDA’s Foreign Agricultural Service (FAS) report, anticipating between 800k MT and 1.3 MMT of old crop corn sales for export during the week ending on 3/21. On the other hand, new crop bookings are projected to remain below 150k MT for the same period.
Global Trade Dynamics
South Korea has emerged as a significant player in the corn market, with NOFI initiating a tender for 134k MT and FLC securing 65k MT without a formal tender on Tuesday. Furthermore, MFG reportedly locked in 70k MT of feed corn, underscoring the ongoing global trade dynamics.
International Planting Trends
Safras and Mercado’s latest report highlighted Brazil’s corn planting progress, reaching 97.3% for the 2nd crop as of 3/22. This figure represents a notable improvement from the 94.7% recorded at the same time last year. Meanwhile, in Texas, corn planting has surged to 46% completion as of 3/24, marking a significant jump of 12% points from the previous week and placing it 3% points ahead of the average pace. Additionally, TX milo planting stands at 37%, 1% point above the average.
Export Insights
On the export front, US corn export inspections Year-to-Date (YTD) have hit 24.4 MMT, demonstrating a substantial increase compared to the 18.3 MMT recorded at the same point last year, indicating robust global demand for American corn.
Current Corn Prices
May 24 Corn is currently priced at $4.29, marking a decrease of 3 1/2 cents. Similarly, Dec 24 Corn stands at $4.64 1/4, down 3 3/4 cents from previous levels, reflecting the ongoing price volatility in the market.
Any position in the securities mentioned in this article is not held by Alan Brugler, directly or indirectly. The information provided here serves purely informational purposes. For further details, please refer to the Barchart Disclosure Policy.
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