The corn futures market dropped double digits today, with 2% to 2.2% losses in old crop. For March, the 13 3/4 cent loss was the was the largest single day move since 1/12, and was the largest loss since Jan 4th. New crop held relatively firm, but futures still fell 6 1/2 to 7 3/4 cents.
Weekly EIA data showed 1.029m barrels of ethanol was produced daily through the week that ended 2/17. That was a 10-wk high, and was up 15k barrels/day from the past week. Ethanol stocks were built up by 249k barrels to 25.588 million.
USDA’s Ag Outlook Forum released their initial estimate for the 2023/24 balance sheet. Corn acreage was estimated at 91 million acres, which would be up from 88.6m this season but close to the average trade guess. Applying general silage and abandonment and trendline yields has the corn crop at 15.085 bbu. USDA’s Ag Outlook Forum expects the total FSI use at 6.69 bbu, feed and residual as 5.6 bbu, and 2.2 bbu of exports for a 1.887 bbu carryout. Their projected cash average price for next year was $5.60.
Traders estimated the weekly Export Sales for corn will be between 500k MT and 1.3 MMT for old crop with as much as 100k MT for new crop. The report will be out Friday, due to the Monday holiday.
BAGE lowered their estimate for Argentina’s corn crop by 3.5 MMT to 41 MMT.
Mar 23 Corn closed at $6.60 1/4, down 13 3/4 cents,
Nearby Cash was $6.60 1/4, down 14 1/2 cents,
May 23 Corn closed at $6.59 1/4, down 15 cents,
Jul 23 Corn closed at $6.50 3/4, down 13 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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