Closing Strong in February
As February came to a close, corn futures displayed unwavering resilience, with the front month contracts ending anywhere from unchanged to 2 ½ cents higher. However, the month wasn’t all rosy, as May prices saw a net decline of 29 cents, with December corn closing 16 ¾ cents in the red. This marked a stark contrast to the previous year, with the average Dec corn price plummeting from $5.91 to $4.66 in the month’s crop insurance calculation.
Market Activity and Global Demand
Recent reports from the USDA revealed a surge in corn bookings, reaching 1.08 MMT for the week ending on 2/22. This figure represented a notable increase from the previous week’s 820k MT and aligned well with market expectations. For the upcoming months, new crop sales were reported at 165k MT, bringing the total forward book to 1.62 MMT – a 5% lead compared to the same period last year. Furthermore, existing commitments for old crop corn stood at an impressive 30% ahead of last year’s pace, amounting to 38.12 MMT.
Global Market Dynamics
Algeria, Iran, and Taiwan have emerged as key players in the global corn market, with tenders and demands for substantial quantities of corn, soya meal, and barley. Meanwhile, industry experts eagerly anticipate NASS’s report on corn use for ethanol in the upcoming Grain Crush report, with projections hovering around 445.9 mbu – a potential 1.1% increase if these forecasts materialize. In a complementary report, the EIA disclosed that ethanol producers experienced a slight dip in daily output, averaging 1.078 million barrels per day in the week ending 2/23, down from the previous week’s 1.084 million barrels. Moreover, ethanol stockpiles saw a modest upswing of 520k barrels, reaching 26.022 million barrels.
Closing Figures
Mar 24 Corn closed the day at $4.15 3/4, up 2 1/2 cents, while Nearby Cash was at $3.99 3/8, reflecting a 2 1/2 cent increase. Similarly, May 24 Corn ended at $4.29 1/2, up 1 cent, with Jul 24 Corn at $4.41 1/4, a modest 1 cent gain, and Sep 24 Corn closing at $4.50 1/4, up 1/4 cent.
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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