The morning corn trade has futures fractionally to 2 ¾ cents in the black and only ¾ off their overnight highs. The corn market settled near the highs on Tuesday with 2 ½ to 5 cent gains across the front months.
The weekly EIA data release, including the week’s ethanol stocks and production, will be released later this morning.
The Korean Feed Association (KFA) bought 65,000 MT of optional origin feed corn in a snap tender for $265.50/mt CF per trade sources. There are trade rumors that China may have cancelled as many as 10 vessels of previously purchased Brazilian corn. US FOB corn is currently cheaper although low water levels in the Panama Canal are complicating logistics.
Trader estimates ahead of Friday’s December WASDE and Crop Production reports show analysts are looking for a miniscule change, seeing a 2.8 mbu tighter corn carryout for the U.S. and a 1.6 MMT tighter carryout for the world picture. Argentina is projected with a 300k MT lighter production and a 1.8 MMT lighter output is seen for Brazil.
A publicly traded farming company in Brazil, SLC Agricola, reported their winter corn area will be 7.5% below their prior estimate given struggles with the summer soybean crop. Brokerage firm StoneX figures Brazil’s first crop corn output at 26.45 MMT (from 26.77 previously), and their second crop production at 97.33 MMT (down from 98.96 MMT).
Dec 23 Corn closed at $4.68 1/2, up 8 1/4 cents, currently up 2 3/4 cents
Nearby Cash was $4.59 5/8, up 6 cents,
Mar 24 Corn closed at $4.90 1/2, up 5 cents, currently up 1 1/4 cents
May 24 Corn closed at $5.02, up 5 cents, currently up 1 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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