Corn Falls into the Close Despite Smaller South American Crops
Corn futures failed to see much positive reaction post-USDA report on Tuesday, despite a cut to both the Argentina and Brazilian crops. Contracts closed with losses of 6 to 8 cents in the front months and a penny lower in new crop December. The national average Cash Corn price from cmdtyView was down 7 1/4 cents at $4.50 3/4.
USDA’s monthly WASDE report showed the US 2024/25 carryout total at 1.54 bbu, unchanged from last month and compared to the trade’s estimate for a 14 mbu cut. USDA raised the US cash average price by a dime to $4.35.
On the World side, Brazil production was 1 MMT lower at 126 MMT, as the USDA cited slower planting progress of the second crop. Argentina was down 1 MMT to 50 MMT compared to the 49.5 MMT trade estimate. USDA also slashed world stocks by 3.03 MMT to 293.34 MMT, with Chinese stocks down 3 MMT on fewer imports.
Brazil’s ANEC increased their projection for the Brazilian exports in February to 1.3 MMT, up from 1.03 MMT in their previous estimate. Brazil’s corn crop was estimated at 125.03 MMT according to Patria Agronegocios, a 4.8 MMT reduction from their previous number.
Mar 25 Corn closed at $4.84, down 7 1/2 cents,
Nearby Cash was $4.50 3/4, down 7 1/4 cents,
May 25 Corn closed at $4.98, down 6 1/2 cents,
Dec 25 Corn closed at $4.70 1/4, down 1 cent,
New Crop Cash was $4.38 5/8, down 1 1/4 cents,
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.