Corn Strengthens Overnight
Corn prices are off the overnight highs, which had May up by 6 ¾ cents, but are still 2 to 3 cents higher going into the release of the USDA weekly Export Sales report. The corn market worked within a fairly tight range for old crop on Wednesday, from UNCH to -4c. May ended the day with a ½ cent loss as July settled UNCH. New crop prices firmed up by ½ a penny to 2 ¾ cents for the close, which now has Dec at a 35 ¾ cent premium to spot.
Traders are expecting the FAS data to have between 800k MT and 1.4 MMT of old crop corn sales for the week that ended 3/14. New crop corn export sales are expected to be below 75k MT.
EIA reported ethanol producers averaged 1.046 million barrels per day through the week that ended 3/15. That was a 22k bpd increase for the week. Ethanol stocks were 227k barrels looser at 26 million barrels.
USDA’s Ag Attache released Mexico’s preliminary 24/25 corn balance sheet, showing a likely increase for corn production. Citing average weather, trend yield improvements, and increased planted acreage corn output was 2.7 MMT higher to 25 MMT. The attaché reports are not considered official data, and the WAOB is free to modify the data before use in a WASDE report.
May 24 Corn closed at $4.39, down 1/2 cent, currently up 2 3/4 cents
Nearby Cash was $4.15 1/2, down 1/8 cent,
Jul 24 Corn closed at $4.52 1/4, unch, currently up 2 3/4 cents
Dec 24 Corn closed at $4.74 3/4, up 1 1/2 cents, currently up 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.
