Mixed Friday in Corn Market

New crop corn prices closed a penny to 1 1/2 cents weaker on Friday, while new crop extended the bounce by a penny to 2 3/4 cents. USDA reduced the cash average corn price by 10 cents to $6.70 in the Dec WASDE. 

USDA’s weekly Ethanol Report showed the average cash prices for ethanol ranged $1.87 to $2.20/gal regionally for the week, mostly 10 to 26 cents lower wk/wk. The week’s cash DDGS trade ranged $210 to $280/ton for the week regionally, mostly up by $5-10/ton. Corn oil prices were 67-75 cents, mostly near 68 across the country this week; that was mostly 6 to 9 cents/lb lower. 

Weekly CFTC data showed managed money firms reduced their net long by 71.5k contracts during the week that ended 12/6. That was the largest net bear move from the specs since the week that ended August 2019 – fueled by 43k fewer longs and 28.5k new shorts. As of 12/6, managed money was 120,213 contracts net long in corn – the lowest since Sep of 2020. Commercial corn hedgers had their largest net bull move since May of 2021 during the week. Their 57.5k new longs and 26.8k covered shorts left the group 356,614 contracts net short – the weakest since Sep of 2020. 

The domestic corn balance sheet was mostly left alone in USDA’s December WASDE – save for a mostly anticipated 75 mbu export trim and a 10 cent reduced cash average price ($6.70/bu). Exports are now forecasted at 2.075 bbu, down 396 mbu (16%) from last year. 

Globally, South America was left UNCH in this report despite analysts expecting reduced output on average. Total world output was cut by 6.5 MMT but most was via Ukraine. Exports were reduced by 1.1 MMT, mostly from the U.S. with a 2 MMT boost to Ukrainian shipments. 

Brazil’s CONAB reduced their corn production forecast by 0.57 MMT to 125.83 MMT, close to USDA’s 126 MMT.

Dec 22 Corn  closed at $6.34 3/4, up 2 3/4 cents,

Nearby Cash   was $6.49 3/8, up 1 1/4 cents,

Mar 23 Corn  closed at $6.44, up 1 1/2 cents,

May 23 Corn  closed at $6.45 1/4, up 1 cent,