Corn Futures Decline as Planting Progress Falls Below Average
Corn futures closed the Tuesday session with prices falling 6 to 7 cents. The new crop December contract decreased by 6 ½ cents as markets avoided aggressive bidding for additional acres, given the current new crop soybean-to-corn ratio of 2.24. The front-month CmdtyView national average cash corn price also fell by 6 cents, settling at $4.48 1/2.
Crop Progress Report
The Crop Progress data released Monday indicates that planting in states such as Illinois, Indiana, Kentucky, North Carolina, Tennessee, and Wisconsin is below the five-year average pace. Iowa’s planting is 18% complete, compared to an average of 7%, while Nebraska reports 8% completion against a typical 5%. At the national level, planting remains 2 percentage points ahead of the norm. Emergence stands at 2%, which aligns with what is considered normal.
Despite the faster-than-expected planting rate, recent rains and a wet forecast for the upcoming week across the Plains to the Mississippi River could hinder further progress.
International Outlook and Market Prices
Conditions for corn growth in Brazil have improved lately. Dr. Michael Cordonnier has raised his projection for Brazilian corn output by 3 million metric tons (MMT), now estimated at 125 MMT. Similarly, expected output in Argentina has been revised upward by 2 MMT to reach 48 MMT.
May 25 Corn closed at $4.75 3/4, down 6 cents.
Nearby Cash was $4.48 1/2, down 6 cents.
Jul 25 Corn closed at $4.83 1/4, down 6 3/4 cents.
Dec 25 Corn closed at $4.58, down 6 1/2 cents.
New Crop Cash was $4.22 1/8, down 6 3/4 cents.
On the date of publication, Austin Schroeder did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, please view the Barchart Disclosure Policy here.
More news from Barchart
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
