Corn Market Update: Futures Rise Amidst Ethanol Production Spike
On Wednesday, corn futures saw increases ranging from 6 to 7.5 cents across various contracts, driven by a decline in the US dollar index and a resurgence in ethanol output. The national average Cash Corn price for the current month rose by 6.75 cents, reaching $4.34 and 3/4 cents.
Recent data from the Energy Information Administration (EIA) highlights an impressive rise in ethanol production, climbing by 43,000 barrels per day to a total of 1.036 million barrels per day in the week ending May 16. Additionally, ethanol stocks decreased by 501,000 barrels, settling at 24.944 million barrels, with a significant reduction of 809,000 barrels in the Midwest region. Inputs from refiners dropped by 10,000 barrels per day week-over-week, now sitting at 919,000 barrels daily.
Looking ahead, the upcoming Thursday Export Sales report is anticipated to show old crop transactions between 0.7 million to 1.6 million metric tons (MMT) for the week of May 15. In contrast, expected new crop sales range from 50,000 metric tons to 500,000 metric tons.
Private analyses by Agroconsult have projected Brazil’s second corn crop at 112.9 MMT, notably higher than the 99.8 MMT forecast provided by CONAB in the previous week.
In trading specifics, July corn closed at $4.61, reflecting an increase of 6.5 cents. Nearby cash prices registered at $4.34 and 3/4 cents, up by 6.75 cents.
September corn contracts closed at $4.42 and 3/4 cents, gaining 7.5 cents, while December contracts finished at $4.55 and 1/2 cents, a rise of 7 cents. New crop cash prices were reported at $4.14 and 1/2 cents, also an uptick of 7 cents.
This surge in the corn market coincides with broader agricultural trends influenced by both domestic production metrics and international developments. Keep an eye on market reports for ongoing shifts in corn pricing and production forecasts.
