Corn started the week by opening the session lower and continued to trade lower throughout the night. Early selling was tied to tariff concerns as there are now more questions than answers since the Supreme Court found the use of IEEPA was illegal. Now the courts are going to be forced to determine if the funds need to be refunded and if the trade deals established while the tariffs were being implemented are legal. Strength returned at the start of the day session with support spilling over from a stronger soybean complex as well as from reports that Columbia was in and bought 125 TMT of US corn.
Weather concerns in Brazil added support. As of Feb 20, Brazil’s first crop corn harvest was estimated at 27% complete vs 23% last week and vs 32% average. Second crop corn planting progress was estimated at 37% complete vs 21% last week and 38% average.
In Tuesday’s session corn traded mostly lower in a 2-cent range overnight, added to the losses in the day session only to trim losses at the end of the session and close within a couple cents on either side of unchanged. A lack of news kept the market trading in a narrow range. Traders expect Wednesday’s ethanol report will show steady production compared to the prior week. Dr Cordonnier lowered his estimate of Brazil’s production by 1.0 MMT to 135.0 MMT due to slow planting progress. Brazil’s 2nd crop corn is only 50% planted vs. 64% at this time last year and the ideal planting window has closed.
On Wednesday corn saw small gains overnight, turned slightly lower early in the day session but then rebounded and closed with gains. Widespread rains in Brazil were supportive as the central part of the country was already seeing behind average 2nd crop corn planting. Demand optimism was also supportive. Taiwan bought 65,000 MT of US corn overnight.
Last week’s ethanol production was 1.113 million barrels per day, down 5,000 barrels per day from the prior week. Stocks rose by 58,000 barrels to 25.6 million. Gas demand was steady compared to the prior week (where it rose sharply).
Corn opened Thursday’s session lower but managed to shake off the early selling pressure and push higher to end the night session in the black. Early selling was tied to technical pressure was corn failed to cross over resistance. News that the Trump administration plans to reallocate 50% of the exempted biofuel blending obligations to big refineries helped corn firm by the end of the night session. Buying continued to push corn at the start of the day session due to adverse weather conditions in Brazil (rain delays in planting). Gains were trimmed late in the session due to a disappointing export sales estimate and from position squaring ahead of end of week and end of month.
March corn support is $4.10.
For the week, March corn was at $4.3875 up 11.25 cents. May corn was at $4.485 up 8.75 cents.
For the month, March corn was up 10.5 cents. May corn was up 12.75 cents.
Corn Weekly Comments March 27
Corn Weekly Comments March 27
Corn started the week by opening the session lower and continued to trade lower throughout the night. Early selling was tied to tariff concerns as there are now more questions than answers since the Supreme Court found the use of IEEPA was illegal. Now the courts are going to be forced to determine if the funds need to be refunded and if the trade deals established while the tariffs were being implemented are legal. Strength returned at the start of the day session with support spilling over from a stronger soybean complex as well as from reports that Columbia was in and bought 125 TMT of US corn.
Weather concerns in Brazil added support. As of Feb 20, Brazil’s first crop corn harvest was estimated at 27% complete vs 23% last week and vs 32% average. Second crop corn planting progress was estimated at 37% complete vs 21% last week and 38% average.
In Tuesday’s session corn traded mostly lower in a 2-cent range overnight, added to the losses in the day session only to trim losses at the end of the session and close within a couple cents on either side of unchanged. A lack of news kept the market trading in a narrow range. Traders expect Wednesday’s ethanol report will show steady production compared to the prior week. Dr Cordonnier lowered his estimate of Brazil’s production by 1.0 MMT to 135.0 MMT due to slow planting progress. Brazil’s 2nd crop corn is only 50% planted vs. 64% at this time last year and the ideal planting window has closed.
On Wednesday corn saw small gains overnight, turned slightly lower early in the day session but then rebounded and closed with gains. Widespread rains in Brazil were supportive as the central part of the country was already seeing behind average 2nd crop corn planting. Demand optimism was also supportive. Taiwan bought 65,000 MT of US corn overnight.
Last week’s ethanol production was 1.113 million barrels per day, down 5,000 barrels per day from the prior week. Stocks rose by 58,000 barrels to 25.6 million. Gas demand was steady compared to the prior week (where it rose sharply).
Corn opened Thursday’s session lower but managed to shake off the early selling pressure and push higher to end the night session in the black. Early selling was tied to technical pressure was corn failed to cross over resistance. News that the Trump administration plans to reallocate 50% of the exempted biofuel blending obligations to big refineries helped corn firm by the end of the night session. Buying continued to push corn at the start of the day session due to adverse weather conditions in Brazil (rain delays in planting). Gains were trimmed late in the session due to a disappointing export sales estimate and from position squaring ahead of end of week and end of month.
March corn support is $4.10.
For the week, March corn was at $4.3875 up 11.25 cents. May corn was at $4.485 up 8.75 cents.
For the month, March corn was up 10.5 cents. May corn was up 12.75 cents.