Corn Firming into Monday

Corn is trading 1 ½ to 3 cents stronger early on Monday morning. Corn ended the Friday session a penny off the lows, which were new LoC lows for the market. At the settle the board was 3 ¼ to 4 ¼ cents in the red. March futures were down by 13 ¾ cents for the week. Dec corn was down by 8 ½ cents for the week. 

The weekly CFTC report showed spec money was pushing their short in corn with 24k new shorts and a 17.5k contract stronger net short of 297.7k contracts as of 2/6. The commercial corn hedgers were adding long hedges which pushed their net long 5.5k contracts stronger to 23.5k. 

The weekly ethanol report from USDA’s AMS had cash ethanol prices from $1.37/gal to $1.60/gal this week regionally. That was mostly 4 to 10 cents/gal weaker from the week prior. DDGS were quoted within $5/ton of last week mostly near $180-$220. The cash corn oil market was mostly UNCH to 3c lower from 42 to 48 c/lb regionally. 

CONAB took their Brazilian corn estimate down to 113.7 MMT. Most of that came out of their 2nd crop, with less expected acreage. USDA is reluctant to reduce acreage or yield estimates when the majority of the second crop still remains to be planted.  USDA did tighten projected world ending stocks to 322 MMT in Thursday’s WASDE report.

The BA Grain Exchange cut their estimate of Argentine corn crop conditions, with 31% rated good or excellent vs. 34% last week, but 20% during last year’s drought. . 

Mar 24 Corn  closed at $4.29, down 4 1/4 cents, currently up 3 cents

Nearby Cash   was $4.09 1/2, down 4 1/4 cents,

May 24 Corn  closed at $4.41 1/2, down 3 1/2 cents, currently up 2 3/4 cents

Jul 24 Corn  closed at $4.50 3/4, down 3 1/4 cents, currently up 2 1/2 cents