Corn prices saw a modest rally after the latest Export Sales report, advancing by 4 ¼ to 7 ¼ cents. The upward movement was tempered by an increase in Brazil’s production forecast by CONAB. Positive export sales data contributed to gains of 3 to 6 cents by midday, with additional market influences including forecasts of heavy rains in the Upper Midwest and developing hot conditions in the Corn Belt.
The report revealed that for the week ending June 6th, old crop corn bookings amounted to 1.056 million metric tons (MMT), a 10.6% decrease from the previous week but significantly higher than the same week last year. Japan was the largest buyer with 414,100 metric tons, followed by Colombia with 184,500 metric tons. Cumulative commitments, including both shipped and unshipped sales, now stand at 52.32 MMT, a 35.5% increase from the previous year. New crop sales were reported at 69,463 metric tons, bringing the forward book to 2.98 MMT, roughly equal to this time last year.
Sorghum sales surged to their highest level since mid-February, reaching 118,827 metric tons. Of this total, 237,800 metric tons were sold to Chinese buyers, which included 121,000 metric tons switched from unknown destinations, resulting in a net reduction of 151,000 metric tons.
CONAB’s updated forecast for Brazil’s corn production raised the estimate by 2.5 MMT to 114.14 MMT. Despite this increase, the figure remains below the USDA’s projection of 122 MMT. The adjustment largely pertains to the second crop, now estimated at 88.12 MMT.
Corn Futures Closing Prices:
July 2024 Corn closed at $4.58 ½, up 4 ¼ cents.
Nearby Cash was $4.43 ¼, up 4 ¾ cents.
September 2024 Corn closed at $4.63 ½, up 6 ¾ cents.
December 2024 Corn closed at $4.76, up 7 ¼ cents.
New Crop Cash was $4.40, up 7 ¼ cents.
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