To start the week corn opened the session higher but faded to trade with losses throughout most of the night session. Early selling was tied to position squaring ahead of the holiday. Corn was able to trim losses during the day session due to support from a friendly export inspection estimate, which continues to show strong corn export demand. Year-to-date shipments for corn are about 72% ahead of the previous year’s pace for the same time frame. Light selling was tied to hedge selling pressure as producers lock in futures against their Dec basis fixed contracts ahead of first notice day. As of Nov 21, Brazil was reporting first crop corn planting progress at 88% complete vs 83% last week and 93% average. US harvest progress as of Nov 23 was estimated at 96% complete vs 91% last week and 97% average.
Corn opened Tuesday’s session steady but managed to shake off any early selling pressure and push higher through the overnight session. The day session brought thin light trading to corn as corn traded close to steady to most of the session. Position squaring and the evening up of positions ahead of the holiday and end of month continue to be the main driver. USDA’s Oct 9 export sales estimate added support to corn as it continues to show corn exports maintaining a record setting pace. South Korea bought 68 TMT of US corn, which was part of a 389 TMT purchase. Gains continue to be kept in check from farmer selling as producers lock in futures against basis fixed contracts and look to re own corn in another way. Trump’s comments that China and the US have an extremely strong relationship and that he and Xi have reach a very important deal for ag helped to add support.
In Wednesday’s session corn opened lower but managed to trade steady for most of the night. Like wheat, corn found support once the day session started, with early support coming from last minute position squaring from the evening up of positions ahead of the holiday, first notice day, and month end. Gains were kept in check early from hedge selling as producers finish up with their Dec basis fixed contracts. Light support came Trump’s comments on China. Tuesday morning’s phone call focused on Trump asking China to speed up and increase their purchases of US ag products, which China “more or less agreed.” Technical buying added support, but the gains were slightly exaggerated due to the thin light trading volume. Corn remains in their well-established trading range. Strong demand continues to keep a floor under corn.
Last week’s ethanal production estimate was friendly but still under the pace needed to make USDA’s projection. Last week’s production was estimated at 1.113 million barrels, up 22,000 barrels from the previous week. Stocks were estimated at 21.97 million, down 339,000 barrels from the previous week and a 5-week low. Gas demand rebounded slightly.
Dec corn support is $4.10.
For the week, Dec corn was at $4.3525 up 9.75 cents. Mar corn was at $4.4775 up 10.25 cents.
Corn Weekly Comments November 28
Corn Weekly Comments November 28
To start the week corn opened the session higher but faded to trade with losses throughout most of the night session. Early selling was tied to position squaring ahead of the holiday. Corn was able to trim losses during the day session due to support from a friendly export inspection estimate, which continues to show strong corn export demand. Year-to-date shipments for corn are about 72% ahead of the previous year’s pace for the same time frame. Light selling was tied to hedge selling pressure as producers lock in futures against their Dec basis fixed contracts ahead of first notice day. As of Nov 21, Brazil was reporting first crop corn planting progress at 88% complete vs 83% last week and 93% average. US harvest progress as of Nov 23 was estimated at 96% complete vs 91% last week and 97% average.
Corn opened Tuesday’s session steady but managed to shake off any early selling pressure and push higher through the overnight session. The day session brought thin light trading to corn as corn traded close to steady to most of the session. Position squaring and the evening up of positions ahead of the holiday and end of month continue to be the main driver. USDA’s Oct 9 export sales estimate added support to corn as it continues to show corn exports maintaining a record setting pace. South Korea bought 68 TMT of US corn, which was part of a 389 TMT purchase. Gains continue to be kept in check from farmer selling as producers lock in futures against basis fixed contracts and look to re own corn in another way. Trump’s comments that China and the US have an extremely strong relationship and that he and Xi have reach a very important deal for ag helped to add support.
In Wednesday’s session corn opened lower but managed to trade steady for most of the night. Like wheat, corn found support once the day session started, with early support coming from last minute position squaring from the evening up of positions ahead of the holiday, first notice day, and month end. Gains were kept in check early from hedge selling as producers finish up with their Dec basis fixed contracts. Light support came Trump’s comments on China. Tuesday morning’s phone call focused on Trump asking China to speed up and increase their purchases of US ag products, which China “more or less agreed.” Technical buying added support, but the gains were slightly exaggerated due to the thin light trading volume. Corn remains in their well-established trading range. Strong demand continues to keep a floor under corn.
Last week’s ethanal production estimate was friendly but still under the pace needed to make USDA’s projection. Last week’s production was estimated at 1.113 million barrels, up 22,000 barrels from the previous week. Stocks were estimated at 21.97 million, down 339,000 barrels from the previous week and a 5-week low. Gas demand rebounded slightly.
Dec corn support is $4.10.
For the week, Dec corn was at $4.3525 up 9.75 cents. Mar corn was at $4.4775 up 10.25 cents.