Midweek Corn Under Pressure
Follow through pressure through Wednesday has the corn board another 2 ¾ to 4 cents in the red for midday. December has firmed up by 3 cents from the initial drop at the open to the day’s low.
The weekly EIA data had 1.04 million barrels of ethanol produced per day on average through the week that ended 10/20. That was another 5k bpd increase for the week and was the most output since the week of 8/18. Ethanol stocks were listed at 21.398 million barrels, 286k higher than the week prior.
Heavy rains expected for the central US over the next few days will slow harvest, but also potentially raise water levels on the river system. A lot more will be needed. There is a lag for any storm surge to work downstream, but that would offer potential for barge freight to back off and upriver basis levels to firm.
Anec data has October corn exports at 8.239 MMT for Brazil, that compares to 6.173 MMT last year.
USDA’s Ag Attache estimated Ukraine’s corn yield 9% above the WAOB’s official forecast for a net 2.7 MMT increase to output. The Attache has corn production listed at 30.7 MMT, with exports at 24.7 MMT.
Dec 23 Corn is at $4.80, down 4 cents,
Nearby Cash is at $4.50 1/2, down 3 7/8 cents,
Mar 24 Corn is at $4.94 1/2, down 3 1/2 cents,
May 24 Corn is at $5.02 3/4, down 3 1/4 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.
