Corn Extending Gains as Ethanol Production Bounces
Corn futures rose 1-2 cents on Wednesday, supported by increased open interest and strong ethanol production of 1.078 million barrels per day, according to the EIA. Ethanol stocks dropped by 355,000 barrels to 22.648 million barrels. Analysts expect export sales of 1.1-1.9 MMT for the 2024/25 season. USDA’s WASDE report cut U.S. corn ending stocks by 200 million bushels to 1.738 billion, while global stocks fell by 7.7 MMT to 296.44 MMT. Current corn prices include Dec 24 Corn at $4.42 1/2, up 2 cents.
Corn futures are trading with 1 to 2 cent gains so far on Wednesday to extend the strength on Wednesday. Preliminary open interest saw net new buying on Tuesday, up 26,476 contracts. The national average Cash Corn price from cmdtyView is up 1 1/4 cents at $4.22 ¼.
Weekly EIA data showed ethanol production totaling 1.078 million barrels per day in the week of 12/6, a 5,000 bpd increase from the week prior. Ethanol stocks were 355,000 barrels below the week prior at 22.648 million barrels. Ethanol export were down 3,000 barrels at 123,000 bpd, with refiner inputs up 10,000 barrels per day at 883,000 bpd.
Ahead of the weekly Export Sales report on Thursday, analysts are expecting to see 1.1 to 1.9 MMT of corn sold for 2024/25 in the week ending on 12/5. Another 0-100,000 MT is seen for 2025/26 shipment.
WASDE data from Tuesday showed a massive 200 mbu cut to the US corn ending stocks numbers to 1.738 billion bushels. On the world front, stocks were slashed by 7.7 MMT to 296.44 MMT.
Dec 24 Corn is at $4.42 1/2, up 2 cents,
Nearby Cash is at $4.22 1/4, up 1 1/4 cents,
Mar 25 Corn is at $4.50 1/4, up 1 1/4 cents,
May 25 Corn is at $4.57, up 1 3/4 cents.
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Source : Barcharat
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