Corn Rallies on Friday Despite Increased Production Estimate
Corn futures closed with strength on Friday, as contracts were up 10 to 11 cents in the front months. December managed to close with a 12 cent gain this week. The CmdtyView national average Cash Corn price as up 10 1/2 cents at $3.85 1/2.
USDA’s monthly Crop Production report showed yield at 186.7 bpa, a 2.1 bpa drop from what wat reported in August. Acreage was raised another 1.47 million acres on the planted side (a near record 98.728 million) and 1.356 million on the harvested side, with production up 73 mbu to 16.814 bbu. As for the WASDE, 2024/25 US stocks were 20 mbu higher 1.325 bbu vs. estimates for a 6 mbu increase. With the production increase, new crop carryout was down 7 mbu to 2.11 bbu, with demand raised on a 100 mbu increase to exports.
On the world side, USDA raised the old crop number by 1.07 MMT to 284.18 MMT due to a 3 MMT increase to Brazil output. New crop world stocks were down 1.14 MMT to 281.4 MMT.
CFTC data showed a total of 8,442 contracts added to the spec fund in corn futures and options net short as of September 9. That took their net short position to 99,929 contracts as of Tuesday.
Sep 25 Corn closed at $3.99, unch,
Nearby Cash was $3.85 1/2, up 10 1/2 cents,
Dec 25 Corn closed at $4.30, up 10 1/4 cents,
Mar 26 Corn closed at $4.47 1/4, up 10 cents,
New Crop Cash was $3.85 1/2, up 10 1/2 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.