Key Moments
- Corn futures are trading 3 to 5 cents higher early Wednesday after mixed action in the prior session.
- USDA confirmed a 120,000 MT private export sale of old-crop corn to unknown destinations on Tuesday.
- US corn planting reached 97% with 67% of the crop rated good to excellent, while condition ratings varied sharply by state.
Early Wednesday Trade and Prior Session Recap
Corn futures are posting early Wednesday gains, with prices up between 3 and 5 cents in the morning session. This follows a choppy Tuesday, when contracts slipped from midday highs and finished the day anywhere from steady to 1 1/2 cents lower, with the exception of front-month July, which managed a 3/4 cent increase.
Open interest expanded by 17,705 contracts on Tuesday as roll activity intensified. July positions declined by 30,247 contracts, while open interest in September increased by 34,228 contracts. The CmdtyView national average cash corn price moved 1 1/2 cents higher to $3.86 1/4.
Export Activity
On Tuesday morning, USDA reported a private export sale of 120,000 metric tons of old-crop corn to unknown destinations, providing additional support to the market.
Crop Progress and Condition Ratings
According to NASS Crop Progress data released Monday, 97% of the U.S. corn crop was planted as of June 7. Emergence stood at 86%, which was described as near the 5-year average. National condition ratings showed 67% of the crop in good to excellent condition, unchanged from the prior week.
The Brugler500 index for corn improved by 1 point to 372, driven by an uptick in the excellent category. However, conditions were not uniform across states. Texas saw an 11-point decline in its index reading, and Indiana dropped by 10 points. In contrast, Iowa improved by 2 points, Nebraska by 4 points, and Illinois by 5 points.
Market Expectations Ahead of WASDE
USDA is scheduled to publish its monthly WASDE report on Thursday. A Bloomberg survey of traders cited in the article indicated expectations for a 6 million bushel reduction in old-crop U.S. corn ending stocks to 2.136 billion bushels. New-crop U.S. corn carryout is projected at 1.947 billion bushels, which would represent a 10 million bushel cut if realized.
Futures and Cash Market Snapshot
Recent futures settlements and current price indications show a firming tone in the market, particularly in early Wednesday dealings.
| Contract / Market | Prior Close | Change at Close | Current Move |
|---|---|---|---|
| Jul 26 Corn | $4.19 1/2 | up 3/4 cent | currently up 3 3/4 cents |
| Nearby Cash | $3.86 1/4 | up 1 1/2 cents | – |
| Sep 26 Corn | $4.27 1/2 | unchanged | currently up 4 1/4 cents |
| Dec 26 Corn | $4.45 1/4 | down 3/4 cent | currently up 4 3/4 cents |
| New Crop Cash | $4.01 1/2 | up 1/4 cent | – |
Disclosure
On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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