Corn Futures See Mild Gains as Market Adjusts
Corn futures demonstrated early gains on Monday, rising 2 to 4 cents. Following a week marked by losses, sellers took profits, resulting in contracts increasing across most months. Notably, July dropped 19 ¼ cents (4.10%) last week, while December fell by 8 ¼ cents. Preliminary open interest rose by 6,068 contracts on Friday, primarily in December (+8,587) and March (+4,539). Additionally, there were 12 deliveries issued against May on Friday night, which will expire on Wednesday. The nearby CmdtyView national average Cash Corn price increased by 2 1/4 cents, reaching $4.20 1/4.
As of May 6, speculators in corn futures and options reduced their net long position by a total of 57,436 contracts. The net long reached just 13,893 contracts this Tuesday, marking the lowest level since early November.
Upcoming USDA Balance Sheet Release
The USDA is set to release its first look at the U.S. balance sheet later today. According to a Reuters survey of analysts, the expected yield is 181.1 bushels per acre (bpa), with production forecasted at 15.787 billion bushels. Analysts expect the U.S. carryout to decrease by 22 million bushels to 1.443 billion bushels for the old crop, while the new crop is estimated at 2.02 billion bushels in the USDA’s first release.
Ahead of the WASDE report, analysts anticipate a drop in Argentina’s corn production by 0.25 million metric tons (MMT) from last month, amounting to 49.75 MMT. In contrast, Brazil’s output is projected to increase roughly by 1 MMT, totaling 126.96 MMT on average. World ending stocks are expected to decrease slightly to 287.65 MMT for the old crop, with new crop estimates at 297.36 MMT.
Current Market Prices
As of now, May 25 corn closed at $4.41 1/2, up 2 1/2 cents, currently up 1 1/2 cents. Nearby Cash reached $4.20 1/4, also up 2 1/4 cents.
On July 25, corn closed at $4.49 3/4, increasing by 2 1/4 cents, and is currently up 3 1/2 cents. December 25 corn finished at $4.42, up 3 1/4 cents, and is currently up 2 1/2 cents. New Crop Cash stood at $4.00 3/4, reflecting a rise of 3 cents.
On the date of publication, Austin Schroeder did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data presented are for informational purposes only. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
