The corn market is giving back a big chunk of Thursday’s rally ahead of the weekend, with futures down 4 to 5 cents at midday. The US dollar is up sharply on big May employment gains, making US exports more expensive in third party currency terms.
Industry surveys ahead of Wednesday’s USDA WASDE supply/demand report anticipate the government will show old crop ending stocks of 2.009 billion bushels and 2024/25 ending stocks of 2.079 billion bushels. Both would be lower than the May numbers if realized.
Some traders cited a Brazilian executive order restricting use of some tax credits as a bull factor for corn yesterday. The change is effective immediately, but the ag industry is united in opposing it and there are expectations that the Brazilian Congress will not approve it.
Jul 24 Corn is at $4.46 1/2, down 5 1/2 cents,
Nearby Cash is at $4.29 3/4, down 5 1/4 cents,
Sep 24 Corn is at $4.52 3/4, down 5 cents,
Dec 24 Corn is at $4.65 1/2, down 4 cents,
New Crop Cash is at $4.29, down 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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