Commodity Update: Corn Prices Experience Modest Gains on Tuesday
Market Overview and Recent Trends
The corn market is showing small gains of 1 to 2 cents this Tuesday morning. On Monday, futures trading resulted in mixed outcomes: Nearby December futures rose by 1 ½ cents, while some other deferred contracts remained steady or increased slightly. Conversely, most old crop contracts displayed slight decreases. An overnight report noted 111 deliveries against December corn futures, all completed by an R.J.O customer. The national average cash corn price from cmdtyView decreased by 3 cents, bringing it to $4.04 1/2.
Ethanol Production Data Released
The USDA’s Grain Crushing report for October revealed that 460.49 million bushels of corn were used for ethanol production this month. This figure marks a 0.4% reduction compared to last year but reflects a 3% increase from the previous month.
Export Shipments and Historical Context
The weekly Export Inspections report from FGIS indicated that 935,859 metric tons (or 36.54 million bushels) of corn were shipped for the week ending November 28. This amount is 20.45% lower than the same week last year and down 7.24% from the previous week. Colombia ranked as the top destination with 244,540 metric tons, while shipments to Mexico were restricted to 200,201 metric tons. Cumulatively, marketing year shipments have reached 11.07 million metric tons (435.8 million bushels), which represents a 30.73% increase compared to last year and the highest total for this week in six years.
Positioning and Futures Market Movement
Recent Commitment of Traders data revealed that speculative funds in corn futures and options reduced their net long position by 17,410 contracts as of November 26. Their current net long stands at 97,442 contracts.
Futures Prices Snapshot
December 24 Corn closed at $4.24 1/2, up 1 1/2 cents and is currently up 1 3/4 cents. The Nearby Cash price was reported at $4.04 1/2, down 3 cents.
Meanwhile, March 25 Corn finished at $4.32 1/2, down 1/2 cent, but is presently up 2 cents. May 25 Corn closed at $4.39, down 3/4 cent, and is currently up 1 1/2 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 strictly for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
