Friday Bounce for Corn Market

Through midday, the corn futures market is mixed with new crop fading another 2 to 3 cents, while old crop futures are bouncing as much as 9 cents. Preliminary open interest was down another 12,517 contracts – due to long liquidation in the May contract.  The rest of the months showed net new selling. 

There were zero deliveries against May corn on FND, and few to none had been expected despite the longs fleeing the contract. The oldest long remaining is dated July 13,2022.  That is one patient bull. 

The EPA is set to announce an E15 waiver for use from June 1 through Sep 15. USDA quoted the weekly the weekly ethanol cash prices from $2.21 to $2.40/gal regionally, mostly 1 to 7 cents weaker. DDGS were shown $-25 to $+18/ton for the week from $245 to $295 regionally. The weekly update had regional corn oil prices from 54 to 56 cents/lb, within 2 cents of last week. 

USDA announced another large export sale cancelation yesterday by China, removing 233k MT of old crop corn from their books. The weekly FAS report showed 399,972 MT of old crop corn was sold during the week that ended 4/20. That was a 28% increase from last week and was mid-range of the expectations. The week’s export shipment was shown as 1.076 MMT and brought the season’s total to 23.67 MMT. Adding the 14.78 MMT of unshipped sales has the total commitment at 38.452 MMT, or 1.514 bbu, which is 82% of the forecast. 

May 23 Corn  is at $6.36, up 9 cents,

Nearby Cash   is at $6.18 3/4, up 5 1/4 cents,

Jul 23 Corn  is at $5.85, up 3 1/2 cents,

Dec 23 Corn  is at $5.27 3/4, down 3 cents,