The 2 1/2 to 6 cent losses in nearby corn futures pulled the market to a net loss for the week through Wednesday. March futures are now 4 1/4 cents below last Friday’s close, while Dec corn prices are sitting at a 3/4 cent loss for the week.
USDA reported 213,370 MT of old crop corn sales to Mexico this morning. Ahead of USDA’s weekly FAS data, analysts expect between 600k MT and 1.2 MMT of corn was sold during the week that ended 2/09. New crop bookings from the report are estimated to be as much as 200k MT.
EIA data showed ethanol producers averaged 1.014m barrels per day through the week that ended 2/10. That was a 14k bale increase from the prior week. Ethanol stocks were up from 24.4m to 25.339 million barrels.
Mexico clarified that it will permit GMO corn imports for animal feed and industrial use, but will only allow non-GMO corn for human consumption, whether yellow or white. They are also going to ban imports of glyphosate weedkillers, further handicapping their own farmers, and will begin an investigation of how eating GMO crops affects humans.
USDA’s Ag Attache reduced their outlook for the Argentina corn crop to 45 MMT citing the drought. They showed that 35-40% of the early planted corn crop had serious damage and that the late planted corn is also showing some effects despite beneficial rain in late Jan – early Feb. Private consultant Cordonnier lowered his Argentine estimate 1 MMT to 43 MMT. USDA is at 47 MMT. He put Brazil at 123 MMT, also below USDA.
Mar 23 Corn closed at $6.76 1/4, down 6 cents,
Nearby Cash was $6.78, down 6 1/2 cents,
May 23 Corn closed at $6.74, down 5 3/4 cents,
Jul 23 Corn closed at $6.63 1/4, down 4 1/2 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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