Corn Works Higher Ahead of USDA Supply/Demand Report

Front month corn prices are 1 to 4 cents higher this morning on pre-report positioning. An afternoon rebound limited the Turnaround Tuesday losses for old crop to 3 1/2 cents. New crop futures ended the Tuesday session fractionally to 1 1/4 cents higher. 

Traders surveyed ahead of the monthly S&D estimates expect USDA to reduce domestic corn carryout by 41.8 mbu to 1.498 billion. Global corn stocks are estimated at 299.5 MMT on average, which would be down by 3.6 MMT vs. the January report. For South America, analysts expect to see between a 1.1 MMT boost to a 5 MMT cut from Brazil and between UNCH to 5 MMT for Argentina. The average estimate is to see USDA go with 113.3 MMT for Brazilian corn production and 52.1 MMT for Argentinian output. 

The official Census numbers have US MY total exports at 15.986 MMT (628.9 mbu) through December, with 196.4 mbu shipped in Dec ’21. That was the most for December exports since 2007/08. 

Mar 22 Corn  closed at $6.32 1/4, down 3 cents, up 4 ¼ this morning

Nearby Cash  was $6.17 on Tuesday, down 3 1/8 cents,

May 22 Corn  closed at $6.34, down 3 1/4 cents, up 2 ¼ this morning

Dec 22 Corn  closed at $5.82, up 1 cent, up ¾ this morning

New Crop Cash  was $5.66 3/8 on Tuesday, up 1/2 cent,