Corn futures found some strength on Thursday ahead of Friday’s USDA reports, likely spurred by some spec short covering of their large net short position. Contracts ended the day with gains of 2 ¾ to 4 ½ cents.
This morning’s Export Sales report showed corn bookings rebounding from the previous week at 538,331 MT during the week of July 4. That was in the middle of the trade range of estimates of 300,000 to 850,000 MT. Columbia was the top buyer of 200,600 MT, as Japan purchased 188,300 MT. New crop sales slipped from the previous week at 116,496 MT, on the lower end of the 0 to 500,000 MT estimates. Mexico bought a total of 143,700 MT, as unknown destinations cancelled 65,000 MT.
Ahead of Friday’s USDA WASDE report, US ending stocks are projected to be increased by 27 mbu for old crop at 2.049 bbu. New crop is seen 210 mbu higher at 2.312 bbu on a larger crop estimate from the increased acreage.
Earlier Thursday morning CONAB raised their Brazilian corn crop estimate by 1.7 MMT to 115.86 MMT. That came via an increase to the second crop, which was raised by 1.9 MMT to 90 MMT. Trade estimates ahead of Friday’s USDA report are looking for a 0.7 cut to 121.3 MMT.
Jul 24 Corn closed at $4.06 3/4, up 3 1/2 cents,
Nearby Cash was $3.91 1/1, up 5 3/4 cents,
Sep 24 Corn closed at $4.00 1/4, up 4 1/2 cents,
Dec 24 Corn closed at $4.10 3/4, up 3 1/2 cents,
New Crop Cash was $3.75 3/8, up 5 3/4 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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