Market Performance Recap
As Thursday’s trading session drew to a close, the corn market found itself about 6 cents below the day’s peaks, yet still reveling in a robust 13 to 16 cent gain. The old crop May contract rounded off the week with a respectable 2 ¾ cent increase, culminating in a 12-cent gain for the month of March. Meanwhile, the new crop Dec contract closed the week with a 2 ½ cent upsurge, wrapping the month up with a solid 14 ¼ cent advancement. The soy/corn ratio for the new crop stood at 2.483 at the market’s close, demonstrating an upswing from the 2.446 ratio that kickstarted the month.
NASS Data Insights
NASS data unveiled that corn stocks were tallied at 8.347 billion bushels as of March 1st, inclusive of 5.079 billion bushels on farms and 3.27 billion bushels off farms. Market expectations were hovering around 8.45 billion bushels, making the actual figure a delightful surprise. This pointed towards a Q2 demand of 3.823 billion bushels, showcasing a marked increase from 3.417 billion bushels seen the previous year.
The prospective plantings data shared by NASS painted a picture of corn acreage at 90.04 million acres, marking a decline of 4.61 million acres year-over-year, surpassing the average expected drop of 2.84 million acres. Minnesota witnessed the largest drop of 700k acres, while Iowa, Illinois, Indiana, Missouri, Ohio, and South Dakota each saw a 300k-acre decrement compared to the previous year.
Export Sales and Closing Figures
The Weekly Export Sales data revealed that 1.206 million metric tons of corn were sold during the week ending on March 21st. This figure exceeded estimates, largely propelled by sales to Mexico and Canada.
May 24 Corn closed at $4.42, marking an impressive 15 1/4 cent surge, while Nearby Cash settled at $4.20 1/2, enjoying a 16-cent uptick. Similarly, Jul 24 Corn wrapped up at $4.54 1/2, with a 15 1/4 cent increase, and Dec 24 Corn closed at $4.77 3/4, climbing 15 1/2 cents.
Analyst Position
Alan Brugler, on the date of publication, did not have any direct or indirect positions in the securities mentioned in the article. All information and data provided in this article are purely for informational purposes.
The expressions and viewpoints articulated in this piece are those of the author and do not necessarily mirror those of Nasdaq, Inc.
