HomeMost Popular The Latest Buzz: Corn Market Rises Midweek

The Latest Buzz: Corn Market Rises Midweek

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Corn Futures on the Upswing

On a midweek high, corn futures closed nearly 2 cents below their peak. Across the front months, futures saw an increase of 2 Β½ to 5 ΒΌ cents. Although May still marks a weekly trade loss of 10 cents, the recent bounce has brought renewed optimism in the market.

Stirring Up the Ethanol Scene

Showcasing growth and resilience, EIA data revealed that ethanol producers hit a record, averaging 1.073 million barrels per day in the week ending 3/29. Noteworthy, the figures showed the largest weekly output since 2/23. With ethanol stocks increasing by 324k barrels to 26.416 million gallons, the ethanol scene seems promising.

Global Developments Shaping the Market

With reports swirling around China’s tactics to bolster its domestic market, global corn dynamics are witnessing a shift. China’s move to slow down corn imports and promote higher yielding GMO varieties reflects a strategic play aimed at supporting local farmers and market stability.

Insights from Brazil

USDA’s Ag Attache’s latest projections for the 2024/25 corn season in Brazil paint a picture of growth and potential. With an initial boost in area by 500k HA, Brazil is expected to produce 129 MMT of corn, with stocks projected to settle at 7.9 MMT by 24/25. Additionally, reports from Safras and Mercado indicate significant progress, with Brazil’s 2nd crop corn already 99.6% planted as of 3/28.

Market Movements

May 24 Corn closed at $4.31 3/4, up 5 1/4 cents, nearby cash at $4.12 5/8, increased by 4 3/4 cents, Jul 24 Corn closed at $4.45, showing a rise of 4 cents, and Dec 24 Corn closed at $4.71 1/4, up 3 1/4 cents. These developments showcase the steady and positive trajectory of the corn market.

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 are solely for informational purposes.

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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