Corn prices are atop their 5 ½ cent overnight range with 3 to 4 ½ cent gains into the midweek’s day trading session. The corn market dropped back on Tuesday with 7 to 9 cent losses across the front months. A sharp sell off in crude and energy products pressured corn and soy oil. The Dec/Dec spread remains at a 41 ¼ cent carry. The new crop soy/corn ratio is 2.54 to 1, heavily favoring a cutback in corn acres for 2024.
There will be no EIA data ethanol production of stocks data released this week due to a scheduled maintenance break.
Census data confirmed the September US corn exports totaled 3.165 MMT. That was up from 2.5 MMT during both Aug and Sep ’22. Ethanol exports came in at 122m gallons which was a 36% increase from Sep ’22.
USDA’s Ag Attache reduced their estimate for Brazil’s corn production by 5 MMT to 130 MMT, citing reduced profitability and therefore reduced acreage. USDA’s official estimate of 129 MMT for Brazilian corn will be updated Thursday but is not required to follow the attaché’s figures.
Dec 23 Corn closed at $4.68 1/2, down 8 3/4 cents, currently up 4 1/2 cents
Nearby Cash was $4.42 7/8, down 8 1/2 cents,
Mar 24 Corn closed at $4.83 1/2, down 9 cents, currently up 4 1/2 cents
May 24 Corn closed at $4.93 1/4, down 8 3/4 cents, currently up 4 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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