Corn Gains Double Digits

Corn futures rallied to new contract highs after the USDA data came out. Old crop prices went home 10 1/4 to 14 1/2 cents stronger. New crop prices closed the day 5 3/4 to 6 1/2 cents in the black. 

USDA made no domestic changes to their monthly S&D forecasts. The 16.375 bbu supply (15.115 production, 1.235 bbu carryin, and 25 mbu import), is forecasted to have 1.540 bbu leftover after 2.425 bbu of exports, 6.750 bbu FSI (5.325 for ethanol), and 5.650 feed and residual. The trade was looking for a lighter carryout ahead of the report. 

Globally, USDA went with a 1.205 billion MT 21/22 corn production figure. That was down 1.61 MMT from Jan’s production, as Brazil was cut by 1 MMT to 114 MMT. The trade was looking for a slightly larger cut on average. Argentina was UNCH at 54 MMT, with the pre report average estimate expecting a 1.9 MMT trim. Brazil is still forecasted to ship 43 MMT of corn, which was UNCH again despite the lower output. Chinese imports were also left at 26 MMT, despite the Attache taking 6 MMT off earlier this month. Global corn stocks were then figured at 302.22 MMT, which was above the trade average guess but still down 850k MT from Jan. 

Mar 22 Corn  closed at $6.46 3/4, up 14 1/2 cents,

Nearby Cash  was $6.31 3/8, up 14 3/8 cents,

May 22 Corn  closed at $6.46, up 12 cents,

Dec 22 Corn  closed at $5.88 1/2, up 6 1/2 cents,

New Crop Cash  was $5.72 3/8, up 6 cents,