Futures Hold Steady at Midday
As the clock strikes noon, corn futures exhibit a glimmer of hope, with prices inching up by 1 to 2 cents across the board. This resurgence follows a significant shift in open interest, with a notable decline of 13,641 contracts. The day witnessed the shedding of 30,973 May positions; however, this drop was somewhat offset by a 14,147 contract roll increase to July. Notably, Friday marked the advent of the much-discussed Goldman Roll, stirring anticipation in the trading realm.
Robust Export Inspections
Recent data on Export Inspections divulged that corn shipments reached a total of 1.42 MMT in the week ending on Thursday, April 4. While this figure represented a marginal 3.52% decrease from the previous week’s volume, it soared an impressive 69.22% when compared to the corresponding period last year. The cumulative shipments for the Marketing Year (MY) have surged to 27.327 MMT, equivalent to 1.075 billion bushels. This total reflects a substantial 35.23% uptick from the same year-to-date (YTD) period in 22/23. Notably, Mexico emerged as the dominant destination, with total shipments reaching 610,642 MT, followed closely by Japan at 451,160 MT.
Challenges in Sorghum Shipments
In contrast, sorghum shipments displayed a less robust performance, plummeting to 69,839 MT from the previous week’s figures. This marked a stark decline of more than two-thirds compared to the previous week and a worrisome 22.95% drop from the same period last year.
Downward Revision in BAGE Corn Forecast
The BAGE corn forecast for Argentina faced a downward revision to 52 MMT towards the end of last week due to mounting insect pressure. This revision contrasted with the USDA’s steadfast stance at 56 MMT in March. Meanwhile, in the Argentinean agricultural landscape, the new crop harvest had merely reached the 11% mark.
Price Points of Interest
Providing a snapshot of current prices, May 24 Corn stands at $4.36 1/4, exhibiting a 2-cent increase. The nearby Cash option is valued at $4.17 5/8, up by 2 1/8 cents. Moving on, the Jul 24 Corn is priced at $4.47 3/4, registering a modest 1-cent increment. Considering the longer horizon, Dec 24 Corn closes in at $4.73 3/4, up by 1 1/4 cents. Lastly, the New Crop Cash option currently sits at $4.36 1/4, marking a 1-cent uptick.
Alan Brugler, the esteemed authority behind this analysis, maintains a transparent stance with no direct or indirect holdings in any of the mentioned securities. The details and insights shared here are purely intended for informational purposes. To delve deeper into this subject, you may refer to the Barchart Disclosure Policy.
These insights and reflections represent the author’s personal viewpoints and do not necessarily align with the broader sentiments of Nasdaq, Inc.
