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Revitalization in Corn Market with Surge in Export Activity and EPA Policy Update Revitalization in Corn Market with Surge in Export Activity and EPA Policy Update

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Corn Futures Rally at Week’s Close

As the week drew to a close, corn futures rebounded with vigor, clawing back losses sustained earlier in the trading session. Witnessing increases of 3 Β½ to 6 ΒΎ cents across the board, May futures led the charge with a robust climb of 6 ΒΎ cents, accompanied by December futures, which ascended by 6 ΒΌ cents as the curtain fell on the trading day.

EPA’s Timely Market Intervention

The Environmental Protection Agency (EPA) injected newfound energy into the corn market with an emergency waiver that reverberated across trading floors. This waiver, designed to circumvent the prevailing ban on summer sales that traditionally kicks in on June 1 for retailers, paves the way for sales of E15 this summer, setting a positive tone for the upcoming months.

Export Boost: Mexico’s Corn Purchase

A ray of hope shone on the corn market as the USDA reported a private export sale of 216,500 MT of corn to Mexico earlier in the day. This sale, meticulously divided between marketing years, saw 23,000 MT earmarked for 23/24 shipment and a substantial 193,500 MT designated for 24/25 delivery, underscoring Mexico’s persistent interest in U.S. corn.

Market Sentiment and Speculative Activity

The Commitment of Traders data painted a vivid picture of speculative activity in corn futures and options, revealing that spec funds fortified their net short position by 16,016 contracts to reach 279,570 contracts as of April 16. This fervent activity suggests a delicate dance of sentiments and strategies in the market.

Argentine Harvest and Global Dynamics

Across the Atlantic, the BA grain exchange provided insights into the Argentine corn landscape, reporting that only 17% of the 2024 crop has been harvested, a modest uptick of 2% from the previous week. This figure, juxtaposed against the 5-year average of 36% harvested at this juncture, echoes global shifts impacting the corn market.

May 24 Corn closed at $4.33 1/2, up 6 3/4 cents,

Nearby Cash was $4.18 5/8, up 7 1/2 cents,

Jul 24 Corn closed at $4.43, up 6 3/4 cents,

Dec 24 Corn closed at $4.66 1/4, up 6 1/4 cents,

New Crop Cash was $4.30 1/2, up 6 7/8 cents,

On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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