Corn Futures Rise Amid Strength in Wheat Complex

Corn futures experienced gains on Tuesday, bolstered by a robust wheat market. Contracts closed with increases of 6 to 7 cents, while the front month CmdtyView national average Cash Corn price rose by 7 1/4 cents, reaching $4.27.

Ethanol Production Update Anticipated

The Energy Information Administration (EIA) is set to release its weekly ethanol production update on Wednesday. Analysts expect a rebound following a decline seen last week.

US Corn Planting Progress

Recent Crop Progress data indicates that 78% of the US corn crop has been planted, aligning with trade estimates. This figure surpasses the 73% average pace and is ahead of last year’s 67%. However, several states showed slower progress, including Illinois (-3%), Kentucky (-11%), Ohio (-12%), and Tennessee (-3%). Emergence stands at 50%, compared to the typical pace of 40%.

Weather Conditions Impacting Planting

The weather forecast for the next week suggests light rain coverage in parts of the Western Corn Belt (WCB), with lesser rainfall expected in Nebraska and Iowa, but heavier totals in the East. This may complicate planting efforts, particularly in Ohio, where only 34% is completed.

Argentina’s Export Tax on Corn to Revert

Argentina’s temporary reduction of the corn export tax to 9.5% will expire at the end of June and will not be extended. As a result, the tax rate will revert to 12% effective July 1, according to an announcement from the Economic Ministry.

Current Corn Futures Prices

Jul 25 Corn: Closed at $4.54 1/2, up 7 cents.

Nearby Cash: $4.27, up 7 1/4 cents.

Sep 25 Corn: Closed at $4.35 1/4, up 7 cents.

Dec 25 Corn: Closed at $4.48 1/2, up 6 3/4 cents.

New Crop Cash: $4.06 1/2, up 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.