Corn prices rose significantly on Thursday, with increases ranging from 9 ¼ to 13 cents, as contracts closed near their intra-day highs. The market was buoyed by strong current and future export prospects.
The USDA announced a sale of 152,000 metric tons (MT) of old crop corn to undisclosed buyers under its daily reporting system, highlighting robust demand.
Market expectations for the USDA’s weekly export sales report ranged from 550,000 MT to 1.2 million metric tons (MMT) for the week ending May 30. The USDA reported actual old crop sales at the higher end of expectations, totaling 1.181 MMT, while new crop bookings were lighter at 113,300 MT.
Monthly data from the Census Bureau revealed that U.S. corn exports in April reached 6.432 MMT, a 28% increase from the previous year and a 9.1% rise from March. In contrast, Brazil’s May corn exports were 421,374 MT, up from 384,884 MT the previous year. This relatively low export volume leaves ample opportunity for U.S. shipments until Brazil’s second crop corn reaches ports in significant quantities later this month.
Traders also noted a bullish factor for corn and soybeans due to a Brazilian executive order restricting the use of certain tax credits in export operations. This order, which requires Congressional approval within four months to remain effective, led Brazilian exporters to temporarily withdraw some export sale offers as they assessed the potential impact.
Market Closing Prices:
Jul 24 Corn: $4.52, up 12 3/4 cents
Nearby Cash: $4.34 1/1, up 13 1/8 cents
Sep 24 Corn: $4.57 3/4, up 12 cents
Dec 24 Corn: $4.69 1/2, up 10 1/2 cents
New Crop Cash: $4.33 1/4, up 11 1/4 cents
Related topics:
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US Grains: Positive Outlook For Crop Progress Pushes Corn And Soy Lower