Corn Futures Surge After Positive USDA Report
USDA Updates Reveal Lower Corn Yield Predictions
Corn futures are experiencing a notable rise on Friday, fueled by favorable USDA numbers released this morning. Contracts have gained between 10 to 12 points by midday. According to cmdtyView, the national average Cash Corn price has increased by 10 3/4 cents, reaching $4.376 1/2.
Crop Production Report Highlights Reduced Yield
The annual Crop Production report revealed a US corn yield projection for 2024 at 179.3 bushels per acre (bpa), which falls short of market expectations and shows a decline of 3.8 bpa compared to November’s report. Additionally, harvested acreage increased by 196,000 acres, but the overall production estimate was cut by 276 million bushels (mbu), totaling 14.867 billion bushels (bbu). This reduction has brought the December 1 stocks to 12.074 bbu, down 97 mbu from the previous year and 73 mbu below estimates. The full-year carryout projection from the World Agricultural Supply and Demand Estimates (WASDE) now estimates ending stocks at 1.54 bbu, down 198 mbu from last month.
No Changes for South American Crops Noted
On the global stage, the USDA did not modify its projections for South American corn crops. World ending stocks were reduced to 293.34 million metric tons (MMT), down by 3.1 MMT from December and nearly 1.5 MMT below estimates.
Weekly Export Sales Report Shows Decline
The weekly Export Sales report indicated just 444,950 metric tons of corn booked for the 2024/25 season during the holiday week ending January 2. This figure fell short of the expected range of 0.7 to 1.4 MMT, marking a new low for the marketing year and a 42.7% decrease from the previous week. Colombia emerged as a key buyer with 177,100 MT, while Japan and Mexico purchased 91,100 MT and 77,900 MT, respectively.
Corn Price Movements
Mar 25 Corn is priced at $4.67 1/2, reflecting an increase of 11 1/2 cents.
Nearby Cash stands at $4.37 1/2, up 10 3/4 cents.
May 25 Corn is currently at $4.76 1/4, showing an increase of 11 3/4 cents.
Jul 25 Corn is priced at $4.78 1/2, up 10 1/2 cents.
On the date of publication, Austin Schroeder did not hold positions in any of the mentioned securities. All information and data presented here are for informational purposes only. For further details, please consult the Barchart Disclosure Policy here.
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