To start the week corn gapped lower at the start of the session and continued to trade with small losses throughout the night. Like wheat, corn had a large 7 cent trading range overnight. Early selling was tied to demand concerns as most are expecting corn demand to hold up due to the tariffs. Losses were kept in check by the past weekend’s rough weather in the Delta states and eastern region of the Southern Plains. Heavy rain resulting in flooding will likely result in crop damage as most regions were reporting rain amounts between 7 to 15 inches. Reports have IN/OH/Southern IL have received 4 to 5 inches. KY/AR/TN reported 10 plus inches of rain. TX/OK/ eastern KS reported 1 to 3 inches. Tariff concerns added market activity to corn today, but in the end, traders realized corn demand is strong, and tariffs have not hampered sales as of yet. As of April 4, Brazil first crop corn harvest was estimated at 62% complete vs 57% last week and vs 65% average.
Corn opened Tuesday’s session steady to higher and proceeded to extend session gains throughout the night and into the day session. Early support came from news that Spain bought 240 TMT of US corn. Reports that 70 countries are lining up to negotiate new trade deals added to the support. The country that has taken the lead spot is Japan, which is the second largest buyer of US corn. Dr Cordonnier left his South American corn production estimates unchanged with Brazil at 122 MMT while Argentina is at 46 MMT.
In Wednesday’s session corn opened lower but managed to overcome the early selling pressure and post gains by the close of the night session. Early selling was tied to tariff concerns as tariffs continue to suck all of the oxygen out of the room. The selling was tied to reports that China matched Trump’s tariff increase by increasing tariffs on the US 50%. Corn turned to trade mostly mixed once the day session got under way. Selling was tied to tariff concerns as late in the session Bloomberg reported that Trump increased tariffs on China to 125%. But that news was also tempered by reports of a 90-day pause of tariffs on all non-retaliating countries. Corn was able to recover and trade with gains late in the session with the hope of the 90-day reprieve as well as from news Big Oil and the Biofuels industry are asking for biodiesel mandate be increased to 5.25 billion.
Corn opened Thursday’s session lower but managed to shake off early selling and push higher. Early pressure came from the continued tariff talks as China and the US continue to raise tariffs against each other. At this time US goods have an 84% tariff going into China while the US has 125% tariffs on all Chinese goods coming to the US. Light selling was tied to CONAB’s Brazil corn production estimate of 124.74 MMT vs 122.8 MMT previously. Estimates from Rosario Grain were also negative as they are now estimating production in Argentina at 48.5 MMT, up 4 MMT. The trifecta of negative news came from last week’s disappointing export pace for corn. Last week’s sales were at the bottom of the range and at 13-week lows.
But losses were trimmed during the day session with support coming from position squaring ahead of today’s USDA report, which was friendly corn. USDA left the 2023 numbers unchanged. For 2025, USDA decreased feed demand 25 MB but increased exports 100 MB. The net result was a 75 MB cut in ending stocks putting stocks at 1.465 BB, 40 MB below expectations.
On the world stage, stocks were estimated at 287.7 MMT, 1200 TMT above expectations but 1.2 MMT below last month. For 2023, Argentina exports were trimmed by 200 TMT. For 2025, Mexico imports were increased 500 TMT. Brazil’s production wads left unchanged at 126 MMT. Argentina’s production was estimated at 50 MMT, 1 MMT above expectations, unchanged from last month.
Target $5.15 to advance sales.
For the week, May corn was at $4.9025 up 30.0 cents. July corn was at $4.97 up 29.75 cents.
Corn Weekly Comments April 11
Corn Weekly Comments April 11
To start the week corn gapped lower at the start of the session and continued to trade with small losses throughout the night. Like wheat, corn had a large 7 cent trading range overnight. Early selling was tied to demand concerns as most are expecting corn demand to hold up due to the tariffs. Losses were kept in check by the past weekend’s rough weather in the Delta states and eastern region of the Southern Plains. Heavy rain resulting in flooding will likely result in crop damage as most regions were reporting rain amounts between 7 to 15 inches. Reports have IN/OH/Southern IL have received 4 to 5 inches. KY/AR/TN reported 10 plus inches of rain. TX/OK/ eastern KS reported 1 to 3 inches. Tariff concerns added market activity to corn today, but in the end, traders realized corn demand is strong, and tariffs have not hampered sales as of yet. As of April 4, Brazil first crop corn harvest was estimated at 62% complete vs 57% last week and vs 65% average.
Corn opened Tuesday’s session steady to higher and proceeded to extend session gains throughout the night and into the day session. Early support came from news that Spain bought 240 TMT of US corn. Reports that 70 countries are lining up to negotiate new trade deals added to the support. The country that has taken the lead spot is Japan, which is the second largest buyer of US corn. Dr Cordonnier left his South American corn production estimates unchanged with Brazil at 122 MMT while Argentina is at 46 MMT.
In Wednesday’s session corn opened lower but managed to overcome the early selling pressure and post gains by the close of the night session. Early selling was tied to tariff concerns as tariffs continue to suck all of the oxygen out of the room. The selling was tied to reports that China matched Trump’s tariff increase by increasing tariffs on the US 50%. Corn turned to trade mostly mixed once the day session got under way. Selling was tied to tariff concerns as late in the session Bloomberg reported that Trump increased tariffs on China to 125%. But that news was also tempered by reports of a 90-day pause of tariffs on all non-retaliating countries. Corn was able to recover and trade with gains late in the session with the hope of the 90-day reprieve as well as from news Big Oil and the Biofuels industry are asking for biodiesel mandate be increased to 5.25 billion.
Corn opened Thursday’s session lower but managed to shake off early selling and push higher. Early pressure came from the continued tariff talks as China and the US continue to raise tariffs against each other. At this time US goods have an 84% tariff going into China while the US has 125% tariffs on all Chinese goods coming to the US. Light selling was tied to CONAB’s Brazil corn production estimate of 124.74 MMT vs 122.8 MMT previously. Estimates from Rosario Grain were also negative as they are now estimating production in Argentina at 48.5 MMT, up 4 MMT. The trifecta of negative news came from last week’s disappointing export pace for corn. Last week’s sales were at the bottom of the range and at 13-week lows.
But losses were trimmed during the day session with support coming from position squaring ahead of today’s USDA report, which was friendly corn. USDA left the 2023 numbers unchanged. For 2025, USDA decreased feed demand 25 MB but increased exports 100 MB. The net result was a 75 MB cut in ending stocks putting stocks at 1.465 BB, 40 MB below expectations.
On the world stage, stocks were estimated at 287.7 MMT, 1200 TMT above expectations but 1.2 MMT below last month. For 2023, Argentina exports were trimmed by 200 TMT. For 2025, Mexico imports were increased 500 TMT. Brazil’s production wads left unchanged at 126 MMT. Argentina’s production was estimated at 50 MMT, 1 MMT above expectations, unchanged from last month.
Target $5.15 to advance sales.
For the week, May corn was at $4.9025 up 30.0 cents. July corn was at $4.97 up 29.75 cents.