Corn Futures Slide Following USDA Yield Report
USDA’s Adjusted Figures Influence Market Dynamics
Corn futures have dipped on Friday after the USDA announced an increase in corn yields. Contracts are down by 1 to 3 cents at midday, easing pressure on bullish traders. The national average cash corn price, according to cmdtyView, has fallen by 1.5 cents, currently standing at $3.84 per bushel.
This morning, the USDA reported private sales of 577,928 metric tons (MT) of corn to unspecified destinations as part of their daily reporting system.
The USDA’s latest Crop Production report revealed a rise in corn yield by 0.2 bushels per acre (bpa) to 183.8 bpa, defying initial expectations for a slight decrease. Consequently, corn production increased by 17 million bushels (mbu) to a total of 15.203 billion bushels (bbu). This increase in output was countered by a 25 mbu rise in export expectations. Alongside a reduction of 52 mbu in 2023/24 carryover stocks, the new crop carry dropped by 58 mbu to 1.999 bbu.
On the global front, the South American figures remained unchanged, resulting in a decrease of world stocks by 1.83 million metric tons (MMT) to 306.52 MMT, mainly due to cuts in the U.S. inventory.
As of October 9, the Buenos Aires Grain Exchange estimates that 18.6% of the Argentina corn crop has been planted. This figure is higher than the same period last year but lags behind the average planting pace.
As for the current corn futures: December 2024 Corn is priced at $4.17, down 1.5 cents; nearby cash corn is at $3.84, also down 1.5 cents. Additionally, March 2025 Corn stands at $4.34, down 2.25 cents, and May 2025 Corn is at $4.42.75, decreasing by 2.25 cents. The new crop cash corn is unchanged at $3.94.75.
On the date of publication, Austin Schroeder did not hold (either directly or indirectly) any positions in 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.
