Corn Backing Off ahead of USDA Reports
Corn futures are near their overnight lows so far on fractionally to 3 ¼ cent losses this morning prepping for the monthly USDA Supply/Demand estimates release at 11 AM CST. The front month corn prices were 7 ½ to 9 ½ cents higher at the close on Thursday. May futures prices saw a 10 ½ cent range almost entirely in the black on the day. Preliminary OI showed short covering in May (-4.3k) and net new buying in Dec (+1k). CME also had 7.8k new calls added yesterday with 5k fewer puts across the corn complex.
Traders are looking for the WASDE report to show a 17.2 mbu cut to U.S. corn stocks on average. Brazilian production is expected to come down by 1.6 MMT and the trade is looking for world carryout or August 31 stocks to tighten by 1.2 MMT vs. last month.
The FAS weekly Export Sales data confirmed 1.11 MMT of corn was booked during the week that ended 2/29. That was a 2.5% increase from the previous week. Total commitments for the year are now at 39.227 MMT (1.544 bbu). There were no new crop corn sales made over the week, leaving the forward book at 1.62 MMT and still 3.7% ahead of the same week last year.
The official Census export total for January was 4.3 MMT, up by 35.6% from last year.
Mar 24 Corn closed at $4.26, up 8 cents, currently down 1/2 cent
Nearby Cash was $4.10 3/8, up 10 1/8 cents,
May 24 Corn closed at $4.38, up 9 1/4 cents, currently down 3 1/4 cents
Jul 24 Corn closed at $4.49 1/2, up 9 1/2 cents, currently down 3 1/4 cents
Dec 24 Corn closed at $4.69, up 8 cents, currently down 1 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.
