Corn Rallies into Turkey Day

Following the weaker start to the holiday week, corn prices wrapped up Wednesday with 3 1/4 to 7 cent gains in the front months. For the week Dec prices are still at a net 4 1/2 cent loss. Open interest for the week has been sliding with a net 35k fewer contracts across the board through Tuesday. Dec led the way, as OI was down 44k on Monday alone, while March OI was up 18.6k contracts WTD through Tuesday. 

Weekly ethanol production data from EIA shows 1.041m bpd were produced through the week that ended 11/18. That was a 30k bpd increase through the week. Ethanol stocks increased by 1.53m barrels to 22.829 million – a 5-wk high. 

News from Mexico shows President Obrador mentioning the country is considering loosening the GMO restrictions as it pertains to livestock feed but not for human consumption. The nation still seeks to become self-sufficient in food and gasoline. 

Reports on the wire suggest a renewed election protest in Brazil has major highways under blockade as demonstrators seek to disrupt grain transport in demonstration of Bolsonaro’s defeat. China’s Cofco received shipment of the first load, 68k MT, of Brazilian corn for the season. 

Russia’s President Putin seeks cooperation from the UN to get sanctioned fertilizer out of European ports. Allegedly +300k MT of fertilizer is stuck in ports of Latvia, Estonia, Belgium, and Netherlands. Separately, Putin wishes to continue fertilizer exports via a pipeline traversing through Ukraine – back in September Ukrainian President Zelensky said the pipeline could be re-opened in exchange of POWs. 

Dec 22 Corn  closed at $6.63 1/4, up 6 1/2 cents,

Nearby Cash   was $6.70 1/2, up 6 7/8 cents,

Mar 23 Corn  closed at $6.66 1/4, up 7 cents,

May 23 Corn  closed at $6.65 1/2, up 6 3/4 cents,