Corn Market Soars as USDA Tightens Supply Projections

The Corn market experienced another significant increase on Monday, with contracts rising by 6 to 8 cents. This surge follows increased buying activity, influenced by the tighter balance sheets reported by the USDA on Friday. Although basis values softened, the national average Cash Corn price rose by 5 cents to settle at $4.42 1/2, according to cmdtyView.

Export Inspections Show Strong Demand

Data on Export Inspections revealed that a total of 1.44 MMT (56.73 mbu) of corn was shipped in the week of January 9. This represents a remarkable increase of 64.27% compared to the previous week and is 50.67% higher than the same period last year. Japan led in purchases for that week at 450,147 MT, followed closely by Mexico with 404,287 MT. Year-to-date shipments have now reached 16.236 MMT (639.2 mbu), marking a 24.49% rise over the same timeframe in 2023/24.

Traders Adjust Positions Amid Market Changes

The Commitment of Traders report revealed that managed money speculators added 24,540 contracts to their net long positions, reaching a total of 253,346 contracts as of January 7. In contrast, commercial traders increased their net short positions by 22,497 contracts, bringing the total to 448,332 contracts as of the prior Tuesday.

Brazil Begins Its Corn Harvest

AgRural reported that the Brazilian corn harvest has begun, with 1.3% of the first crop harvested as of last Thursday. AgResource has revised its estimates for the Brazilian corn crop to 122.39 MMT, a decrease of 1.17 MMT from earlier predictions.

Corn Prices Close Higher

As the markets closed on Monday, here are some notable price points:

• Mar 25 Corn closed at $4.76 1/2, up 6 cents.
• Nearby Cash was reported at $4.42 1/2, up 5 cents.
• May 25 Corn closed at $4.86 3/4, up 7 1/4 cents.
• Jul 25 Corn closed at $4.90, up 8 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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