Corn Market Overview
On Wednesday, the corn market saw a day of mixed fortunes. For the old crop, prices fluctuated within a narrow range, with May experiencing a slight half-cent loss while July remained unchanged. In contrast, new crop prices showed resilience, gaining between half a penny and 2 ¾ cents by the close of trading. This surge has pushed December prices to a premium of 35 ¾ cents over the spot prices.
Market Predictions
Traders are eagerly awaiting the Foreign Agricultural Service (FAS) data, anticipated to reveal old crop corn sales ranging between 800k MT and 1.4 MMT for the week ending March 14. However, the expectations are more subdued for new crop corn sales, projected to come in below 75k MT.
Industry Reports
According to the Energy Information Administration (EIA), ethanol producers saw an uptick in production, averaging 1.046 million barrels per day in the week ending March 15—an increase of 22k barrels per day. Ethanol stocks also experienced a slight increase, with 227k barrels added, bringing the total stockpile to 26 million barrels.
The United States Department of Agriculture’s (USDA) Agricultural Attache released Mexico’s preliminary corn balance sheet for the 24/25 season, showing a significant boost in corn production. The report attributes this growth to favorable weather conditions, improvements in trend yield, and expanded planted acreage, resulting in a 2.7 MMT increase in corn output to reach 25 MMT.
Meanwhile, Chinese customs data revealed a substantial volume of corn imports for 2024, with 6.2 MMT recorded through February. Brazil was a major contributor, accounting for 4.1 MMT of corn, while the U.S. supplied 770k MT. Additionally, on Tuesday, China approved the planting of 27 new genetically modified corn varieties.
Market Closings
In terms of closing prices, May 2024 corn settled at $4.39, a half-cent decrease. Nearby cash prices stood at $4.15 1/2, down 1/8 cent, while July 2024 corn remained unchanged at $4.52 1/4. On a more positive note, December 2024 corn closed at $4.74 3/4, marking an increase of 1 1/2 cents.
Disclaimer: Alan Brugler, the author of this article, does not hold any positions in the securities discussed. The information provided is for informational purposes only. For additional details, refer to the Barchart Disclosure Policy.
Please note that the views expressed here are solely those of the author and may not align with the opinions of Nasdaq, Inc.
