Corn Rallying after USDA Slashes Yield
Corn futures are rallying on Friday after a friendly set of USDA numbers were released this morning. Contracts are up 10 to 12 points at midday. The national average Cash Corn price from cmdtyView is up 10 3/4 cents at $4.376 1/2.
The annual Crop Production report showed the US corn yield from 2024 at 179.3 bpa, well below the average trade estimate and a 3.8 bpa drop from the November report. Harvested acreage saw a 196,000 acre increase, with production being slashed by 276 mbu at 14.867 bbu. The tighter production took the December 1 stocks to 12.074 bbu, which was down 97 mbu from last year and 73 mbu below estimates. The full year carryout projection from the WASDE showed an estimated 1.54 bbu of ending stocks, which was down 198 mbu from last month.
On the world side USDA made no changes to the South American crops. Ending stocks for the world were trimmed down to 293.34 MMT, a drop of 3.1 MMT from December and nearly 1.5 MMT below estimates.
The weekly Export Sales report showed just 444,950 MT of 2024/25 corn bookings in the holiday week ending on January 2. That was below the 0.7 to 1.4 MMT range of estimates, a MY low and down 42.7% from last week. Columbia was the buyer of 177,100 MT, with 91,100 MT sold to Japan and 77,900 MT to Mexico.
Mar 25 Corn is at $4.67 1/2, up 11 1/2 cents,
Nearby Cash is at $4.37 1/2, up 10 3/4 cents,
May 25 Corn is at $4.76 1/4, up 11 3/4 cents,
Jul 25 Corn is at $4.78 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.