Corn Futures Experience Mixed Trading Amid Market Developments

Corn is currently trading with fractionally mixed action on Thursday morning. Futures experienced gains of 6 to 7 ½ cents across most contracts on Wednesday, supported by a weaker US dollar index and a rebound in ethanol production. Preliminary open interest increased by 4,587 contracts on Wednesday. The front month CmdtyView national average cash corn price rose by 6 3/4 cents, reaching $4.34 3/4.

Ethanol Production Reports Show Rebound

The EIA’s weekly update indicated an increase in ethanol production of 43,000 barrels per day, totaling 1.036 million bpd for the week of May 16. Ethanol stocks decreased by 501,000 barrels to 24.944 million barrels, primarily due to a drop of 809,000 barrels in the Midwest. Additionally, refiner inputs of ethanol decreased by 10,000 bpd week-over-week, settling at 919,000 bpd.

Expectations for Thursday’s Export Sales Report

Thursday’s Export Sales report is anticipated to reveal old crop business ranging from 0.7 to 1.6 million metric tons (MMT) for the week of May 15. New crop sales are projected to total between 50,000 MT and 500,000 MT.

Brazilian Corn Crop Estimates Rise

A private firm, Agroconsult, has estimated that Brazil’s second corn crop will reach 112.9 MMT. This figure significantly exceeds CONAB’s estimate from last week, which was pegged at 99.8 MMT.

Market Prices Overview

Jul 25 Corn closed at $4.61, up 6 1/2 cents, and is currently trading up 1/2 cent.

Nearby cash corn was priced at $4.34 3/4, showing an increase of 6 3/4 cents.

Sep 25 Corn closed at $4.42 3/4, rising 7 1/2 cents but is currently down 1/4 cent.

Dec 25 Corn closed at $4.55 1/2, up 7 cents, and is currently down 1/4 cent.

New crop cash was recorded at $4.14 1/2, increasing by 7 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 are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.