Corn Prices Continue to Flounder
The corn market on Friday witnessed a further decline of 4 to 6 ½ cents, with the lead month dipping below the $4 mark for the first time since the fall of 2020.
Weekly Export Sales and USDA Numbers
The weekly Export Sales figures revealed the sale of 820k MT of corn in the week ending 2/15, surpassing the expected 700k MT mark. USDA reported commitments at 37 MMT, marking a staggering 30% increase over the previous year’s pace.
Impact of Ethanol Output on Market Dynamics
According to the EIA data, ethanol output witnessed a modest increase of 1k bpd, reaching 1.084 million barrels per day by the week ending 2/16. Conversely, ethanol stocks experienced a decrease of 308k barrels, settling at 25.5 million. Notably, the EPA’s decision to allow the year-round sale of E-15 gasoline from 2025 onwards marks a significant shift from last year’s temporary waiver. The absence of a similar waiver for this year raises questions about the future trajectory of ethanol sales.
Mar 24 Corn is currently priced at $3.99 1/2, marking a drop of 6 1/2 cents.
Nearby Cash is valued at $3.81, down by 6 1/2 cents.
May 24 Corn is standing at $4.13 1/4, down by 5 1/4 cents.
Jul 24 Corn is priced at $4.26, showing a decrease of 4 3/4 cents.
Please note that on the publication date, Alan Brugler did not hold any positions in the securities discussed in this article. All the information presented here is for informational purposes only. For more details, you can refer to the Barchart Disclosure Policy.
The author’s views and opinions expressed here are personal and do not necessarily align with those of Nasdaq, Inc.
