Midweek Corn Market Closes Higher
Corn futures closed ~2 cents off their highs on a midweek bounce. Futures were up by 2 ½ to 5 ¼ cents across the front months, though May is still at a net 10 cent loss for the week’s trade.
EIA data showed ethanol producers averaged 1.073m barrels per day during the week that ended 3/29. That was the largest weekly output since the week of 2/23. Ethanol stocks were listed at 26.416 million gallons, a 324k barrel increase.
Wire reports indicated that China was encouraging importers to slow receipts of corn in order to support the domestic market during planting and not discourage acreage. China is also expanding planting of higher yielding GMO varieties in 2024. Dalian Corn Prices have been under pressure for most of the past two years, and dropped 90 yuan from late February (2,497 yuan/MT) to March 27 (2,407 yuan/MT). Since, the word of the informal import restrictions have popped prices back up by 43 yuan/MT (~15 cents/bu) to 2,455 (~$8.62/bu).
USDA’s Ag Attache released the initial 2024/25 corn estimates for Brazil. They have initial area up by 500k HA (100k vs WAOB official) to 22 million. Production is expected to be 129 MMT, with stocks finishing 24/25 at 7.9 MMT. Their new projection for old crop was 2 MMT weaker to 122 MMT.
Safras and Mercado reported Brazil’s 2nd crop corn was 99.6% planted as of 3/28.
Wire sources showed Taiwan booked 65k MT of corn, likely to be Argentinian.
May 24 Corn closed at $4.31 3/4, up 5 1/4 cents,
Nearby Cash was $4.12 5/8, up 4 3/4 cents,
Jul 24 Corn closed at $4.45, up 4 cents,
Dec 24 Corn closed at $4.71 1/4, up 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.
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