Corn opened steady to start the week but slipped to trade with losses for most of the night. Selling pressure expanded once the day session got under way with selling tied to a sharply lower crude oil market. A stronger US dollar added pressure. Last week’s export inspections estimate for corn was a bit disappointing, coming in at a marketing year low. Corn demand has started to fade as at the start of the marketing year corn exports were running 70% ahead of last year, now they are only 50% ahead. As of January 30, Brazil’s first crop corn harvest pace was estimated at 11% complete vs 6% last week and 17% last average. Second corn crop planting progress is estimated at 7% complete vs 11% average. StoneX is estimating Brazil’s corn production estimate at 135.5 MMT vs 134.3 MMT previously.
In Tuesday’s session corn opened steady but turned to trade with gains early in the overnight. Buying accelerated once the day session started with early support coming from reports that IRS released their detailed proposed rulemaking for 45Z clean fuel production credit. The proposal limits the products available for the credit to those being produced in the US, Canada, or Mexico only. Reports that the US and India have signed a trade deal added support as it will open up US energy markets. Technical buying added support as corn bounced off support.
On Wednesday corn opened steady but slipped to trade lower for most of the night session. Losses were kept in check from weather concerns and lower production estimates for Argentina’s crop. Cordonnier lowered hist production estimate for Argentina 1 MMT. CONAB is estimating Brazil’s first crop corn planting progress at 95% complete vs 94% average. Harvest of the first corn crop is estimated at 9% complete vs 11% last year and 12% average. Planting of the second crop corn is estimated at 12% complete vs 5% last week and 14% average. Losses were kept in check by a flash export sale of 130 TMT to an unknown destination. In the end, support from a sharply higher soybean complex combined with strong demand to push corn higher.
Last week’s ethanol production took a downturn due to the extremely cold temps. Last week’s production was estimated at 956,000 barrels, down 158,000 barrels from the previous week, Stocks were estimated at 25.14 million, down 264,000 barrels. Gas demand also declined due to the cold temperatures.
Corn opened Thursday’s session lower but managed to rebound and trade with small gains throughout the night session. Buying took charge once the day session started as corn tried to stay more in line with soybeans. Early pressure was due to last week’s disappointing export sales report, which had last week’s corn export pace at the bottom of expectations. But once soybeans managed to shake off their overnight pressure and push higher, corn followed. Expectations that China might be looking at buying other products added support. Reports that China is looking at fading away from being self-sufficient in favor of being a better trading partner also added support. Gains were kept in check by a weaker energy sector which was pressured by reports that the Iran US talks are still on the schedule.
March corn support is $4.10.
For the week, March corn was at $4.3025 up 2.0 cents. May corn was at $4.3875 up 3.0 cents.
Corn Weekly Comments February 6
Corn Weekly Comments February 6
Corn opened steady to start the week but slipped to trade with losses for most of the night. Selling pressure expanded once the day session got under way with selling tied to a sharply lower crude oil market. A stronger US dollar added pressure. Last week’s export inspections estimate for corn was a bit disappointing, coming in at a marketing year low. Corn demand has started to fade as at the start of the marketing year corn exports were running 70% ahead of last year, now they are only 50% ahead. As of January 30, Brazil’s first crop corn harvest pace was estimated at 11% complete vs 6% last week and 17% last average. Second corn crop planting progress is estimated at 7% complete vs 11% average. StoneX is estimating Brazil’s corn production estimate at 135.5 MMT vs 134.3 MMT previously.
In Tuesday’s session corn opened steady but turned to trade with gains early in the overnight. Buying accelerated once the day session started with early support coming from reports that IRS released their detailed proposed rulemaking for 45Z clean fuel production credit. The proposal limits the products available for the credit to those being produced in the US, Canada, or Mexico only. Reports that the US and India have signed a trade deal added support as it will open up US energy markets. Technical buying added support as corn bounced off support.
On Wednesday corn opened steady but slipped to trade lower for most of the night session. Losses were kept in check from weather concerns and lower production estimates for Argentina’s crop. Cordonnier lowered hist production estimate for Argentina 1 MMT. CONAB is estimating Brazil’s first crop corn planting progress at 95% complete vs 94% average. Harvest of the first corn crop is estimated at 9% complete vs 11% last year and 12% average. Planting of the second crop corn is estimated at 12% complete vs 5% last week and 14% average. Losses were kept in check by a flash export sale of 130 TMT to an unknown destination. In the end, support from a sharply higher soybean complex combined with strong demand to push corn higher.
Last week’s ethanol production took a downturn due to the extremely cold temps. Last week’s production was estimated at 956,000 barrels, down 158,000 barrels from the previous week, Stocks were estimated at 25.14 million, down 264,000 barrels. Gas demand also declined due to the cold temperatures.
Corn opened Thursday’s session lower but managed to rebound and trade with small gains throughout the night session. Buying took charge once the day session started as corn tried to stay more in line with soybeans. Early pressure was due to last week’s disappointing export sales report, which had last week’s corn export pace at the bottom of expectations. But once soybeans managed to shake off their overnight pressure and push higher, corn followed. Expectations that China might be looking at buying other products added support. Reports that China is looking at fading away from being self-sufficient in favor of being a better trading partner also added support. Gains were kept in check by a weaker energy sector which was pressured by reports that the Iran US talks are still on the schedule.
March corn support is $4.10.
For the week, March corn was at $4.3025 up 2.0 cents. May corn was at $4.3875 up 3.0 cents.