Corn started the week by opening the session steady and continued to trade with little fanfare throughout the night. Corn saw a tight 1.5 to 2 cent trading range overnight as traders looked for news to help give them direction. Fundamentals appear to be falling apart as traders feel there is no weather issues and although corn demand is strong (which was evident by this morning’s strong shipments estimate), traders feel exports will soon switch to SA origin. A pause in the China US trade negotiations added pressure late. The upcoming BRICS Summit (Brazil, Russia, India, China, South Africa) did not help as this group is looking for new countries to join. Safras and Mercado is estimating Brazil’s corn crop at 139 MMT vs 135.1 MMT previously. AgRural is estimating Brazilian corn crop at 128.5 MMT vs 124.8 MMT previously. Today is the 7th straight lower closes for Dec.
In Tuesday’s session corn spent most of the overnight session on the lower side. Corn got on the positive side late in the overnight session, but those gains were trimmed in the day session and the market closed with small gains. There wasn’t much fresh news to move the market in either direction today. Spillover support from the soybean market helped pull corn to the positive side while overall favorable weather forecasts limited gains. The Dec contract ended their streak of 7 lower closes in a row.
On Wednesday corn opened the session steady but managed to bounce and trade with gains throughout the overnight session. Early pressure came from thoughts that Brazil’s second corn crop could be a monster due to the recent collapse of corn prices in Mato Grosso. Prices there have dropped over 40% in the past 30 days on the expectation of a huge crop. Late in the session, old crop lost is gains and traded mainly steady with pressure tied to Brazil’s soon to be harvested corn crop. It seems odd that the market is not paying closer attention to the continued strong demand for old crop corn and the expectations that USDA will once again have to increase old crop export pace. Light support from the new crop months came from the realization that 7% of the nation’s corn or roughly 6.6 million acres are left to plant and the region that has the most of those acres is forecasted to see heavy rains over the next 5 days.
Last week’s ethanol production estimate was friendly corn as last week’s pace was estimated at 1.105 million barrels, up 49,000 barrels from the previous week and an 11-month high. Stocks were estimated at 24.44 million barrels, up 159,000 barrels from the previous week. Gas demand dropped sharply and is at the lowest level since Feb.
On Thursday corn saw gains overnight, turned lower at the start of the day session but then bounced back and were able to close with small gains. Continued strong demand supported corn. Marketing year to date export sales are running 27% ahead of last year’s pace and will likely lead USDA to increase exports in next Thursday’s report. Rains in the eastern Corn Belt that will slow an already slower than average planting pace added support. Spillover support came from the gains in the soybean market. In export news, South Korea bought 60,000 MT of US corn.
Target $5.15 to advance sales
For the week July corn was at $4.425 down 1.5 cents. Dec corn was at $4.4925 up 10.75 cents.
Corn Weekly Comments June 6
Corn Weekly Comments June 6
Corn started the week by opening the session steady and continued to trade with little fanfare throughout the night. Corn saw a tight 1.5 to 2 cent trading range overnight as traders looked for news to help give them direction. Fundamentals appear to be falling apart as traders feel there is no weather issues and although corn demand is strong (which was evident by this morning’s strong shipments estimate), traders feel exports will soon switch to SA origin. A pause in the China US trade negotiations added pressure late. The upcoming BRICS Summit (Brazil, Russia, India, China, South Africa) did not help as this group is looking for new countries to join. Safras and Mercado is estimating Brazil’s corn crop at 139 MMT vs 135.1 MMT previously. AgRural is estimating Brazilian corn crop at 128.5 MMT vs 124.8 MMT previously. Today is the 7th straight lower closes for Dec.
In Tuesday’s session corn spent most of the overnight session on the lower side. Corn got on the positive side late in the overnight session, but those gains were trimmed in the day session and the market closed with small gains. There wasn’t much fresh news to move the market in either direction today. Spillover support from the soybean market helped pull corn to the positive side while overall favorable weather forecasts limited gains. The Dec contract ended their streak of 7 lower closes in a row.
On Wednesday corn opened the session steady but managed to bounce and trade with gains throughout the overnight session. Early pressure came from thoughts that Brazil’s second corn crop could be a monster due to the recent collapse of corn prices in Mato Grosso. Prices there have dropped over 40% in the past 30 days on the expectation of a huge crop. Late in the session, old crop lost is gains and traded mainly steady with pressure tied to Brazil’s soon to be harvested corn crop. It seems odd that the market is not paying closer attention to the continued strong demand for old crop corn and the expectations that USDA will once again have to increase old crop export pace. Light support from the new crop months came from the realization that 7% of the nation’s corn or roughly 6.6 million acres are left to plant and the region that has the most of those acres is forecasted to see heavy rains over the next 5 days.
Last week’s ethanol production estimate was friendly corn as last week’s pace was estimated at 1.105 million barrels, up 49,000 barrels from the previous week and an 11-month high. Stocks were estimated at 24.44 million barrels, up 159,000 barrels from the previous week. Gas demand dropped sharply and is at the lowest level since Feb.
On Thursday corn saw gains overnight, turned lower at the start of the day session but then bounced back and were able to close with small gains. Continued strong demand supported corn. Marketing year to date export sales are running 27% ahead of last year’s pace and will likely lead USDA to increase exports in next Thursday’s report. Rains in the eastern Corn Belt that will slow an already slower than average planting pace added support. Spillover support came from the gains in the soybean market. In export news, South Korea bought 60,000 MT of US corn.
Target $5.15 to advance sales
For the week July corn was at $4.425 down 1.5 cents. Dec corn was at $4.4925 up 10.75 cents.