Corn Market Declines Amidst Mixed Crop Reports and Production Updates

The corn market is experiencing downward pressure, with contracts trading down by 4 to 7 cents as of Tuesday’s midday. A total of 67 deliveries were issued against the May contract overnight. The nearby CmdtyView national average cash corn price fell by 1.5 cents, landing at $4.19 1/2.

Crop Progress and Planting Data

As reported in the Crop Progress data from Monday afternoon, the U.S. corn crop is now 62% planted as of May 11. This figure surpasses the 5-year average by 6 percentage points. Notably, states such as Illinois (-6), Kentucky (-9), Missouri (-3), North Carolina (-6), and Ohio (-2) are behind their respective average planting paces. Currently, emergence stands at 28%, ahead of the 5-year average of 21%.

Market Reactions to Brazilian Production Estimates

Following the USDA’s increased production estimate for Brazil to 130 million metric tons (MMT) on Monday, Dr. Michael Cordonnier adjusted his forecast modestly, raising it by 1 MMT to 127. This change indicates that the market might be reducing some premium, as a larger Brazilian crop could potentially impact U.S. exports in the fourth quarter.

Current Pricing for Corn Contracts

May 25 Corn is currently priced at $4.33 1/2, down 6 3/4 cents.

Nearby Cash is at $4.13 1/4, down 5 1/2 cents.

Jul 25 Corn is at $4.42 1/4, down 5 3/4 cents.

Dec 25 Corn sits at $4.41 1/2, down 4 cents.

New Crop Cash is now at $3.99 1/4, down 4 cents.

On the date of publication, Austin Schroeder did not have any positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data within this article are for informational purposes only. For more details, please view the Barchart Disclosure Policy here.

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