Corn Extending the Down-Side
Friday morning corn trade has futures 2 ¼ to 2 ¾ cent losses as we roll into the last trade day of the week. Futures were modestly lower on Thursday. Corn is at a net weekly loss of 10 to 12 cents so far. March traded from -4 ½ cents to +2 ¾ cents on the day on Thursday. The cash price for corn was left unchanged at $4.80/bu.
USDA raised projected corn ending stocks 10 million bushels to 2.172 bbu, paring dextrose and glucose production due to slow sales YTD. Traders were looking for a 12.7 mbu tighter carryout on average.
The global updates from the WAOB had world corn production 3.16 MMT lower via a 3 MMT cut to Brazil, now at 124. The trade was looking for a 2.2 cut to Brazil, though CONAB took their estimate down to 113.7 MMT. Most of that came out of their 2nd crop, with less expected acreage. WAOB took the lower output out of stocks, which were 3.16 MMT tighter to 322 MMT.
USDA’s weekly Export Sales were overshadowed by the WASDE report, but the weekly data showed 1.22 MMT of corn sold during the week that ended 2/1. That was a 3-wk high and came in at the top end of the expected range. The season’s corn commitments sat at 34.91 MMT as of 2/1, a 30% increase from last year and 65.4% of the WASDE forecast.
Mar 24 Corn closed at $4.33 1/4, down 1 cent, currently down 2 3/4 cents
Nearby Cash was $4.14 5/8, down 1 1/8 cents,
May 24 Corn closed at $4.45, down 1 1/2 cents, currently down 3 cents
Jul 24 Corn closed at $4.54, down 1 1/2 cents, currently down 2 3/4 cents
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.
