Corn Fading into Day Trade

Morning trades have the corn market fractionally to 2 3/4 cents lower so far for Tuesday. Overnight May stayed +/- 3 cents. Preliminary OI shows the drop yesterday was fresh selling in May and July, but was down 20 thousand contracts overall. There were also 16.6k new options opened as well (July puts and Dec calls were the most popular). There were 352 delivery notices issued for March corn futures. May corn futures dropped another 5 3/4 cents on Monday, netting a 37 cent drop over the last 4 sessions. The new crop contracts fared better on Monday with fractional weakness for the close. 

NASS Crop Progress data from TX showed 5% of the 23/24 corn crop was planted as of 2/26. That is 1% point ahead of the average pace. 

USDA reported the week’s corn shipments at 572,622 MT from the week of 2/23. That was down from 623,795 MT the week prior, and was 982,605 MT below the same week last year. Mexico was the top destination with 56% of the total. Thet weekly Inspections report had the accumulated shipment at 14.308 MMT through 2/23, compared to 23.205 MMT at the same point last year. 

Safras and Mercado had Brazil’s 1st corn crop at 27.6% harvested as of 2/24. That trails last year’s 39% pace, but is above the 5-yr average pace of 25%. The 2nd crop planting pace was marked at 39% for the Center-South region, compared to 48.7% on average. 

Mar 23 Corn  closed at $6.42 3/4, down 7 1/4 cents, currently down 2 3/4 cents

Nearby Cash   was $6.42 3/8, down 6 7/8 cents,

May 23 Corn  closed at $6.43 1/2, down 5 3/4 cents, currently down 2 cents

Jul 23 Corn  closed at $6.33 3/4, down 5 cents, currently down 3/4 cent