The corn market bounced back sharply ahead of the weekend, but still finished with another lower weekly close. Front month futures went home with 7 to 7 ¾ cent gains on Friday, leaving Dec at a net 3 ½ cent loss. Dec ’24 futures were up by 5 ¾ cents for the week, taking the spread to a 40 ¼ cent carry.
USDA’s weekly Ethanol report had prices ranging from $1.86 to $1.94/gal regionally, that was mostly 10-27 cents weaker for the week. DDGS were quoted from $175-$220, mostly near $185 and mostly $3-$10 higher for the week. The corn oil market was shown as 53-59 cents/lb regionally, mostly lower by 2-5 cents.
CFTC’s weekly Commitment of Traders report showed managed money dropped 10.6k longs and added 33.4k new shorts in corn during the week that ended 10/31. That strengthened their net short to 144,432 contracts. Commercial corn hedgers lightened their net short by 27,992 contracts to 46,108 via short covering. That’s not common in the middle of harvest.
Pre-report estimates for the November WASDE show analysts are looking for a looser corn carryout. The average trade estimate is to see a 29.6 mbu larger stock pile of 2.141 billion bushels. On average the trade is expecting production to increase by 25 mbu on a 0.3 bpa yield boost. Thoughts for South American corn production are 500k MT lower for Argentina and a 1.4 MMT cut for Brazil.
Dec 23 Corn closed at $4.77 1/4, up 7 1/4 cents,
Nearby Cash was $4.51 7/8, up 7 3/4 cents,
Mar 24 Corn closed at $4.92 1/4, up 7 1/4 cents,
May 24 Corn closed at $5.01 1/2, up 7 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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