The corn market experienced further declines on Tuesday, with prices down 2 to 4 cents. This downward trend was a continuation of the losses seen following the release of bearish USDA data on Monday. Front month futures closed with losses of 22 to 24 ¼ cents, while deferred contracts were down 5 to 14 ½ cents. Preliminary open interest increased by 44,360 contracts, indicating new selling interest in the market. The national average Cash Corn price was down 24 cents at $3.83 1/4.
Despite the negative news, there were some positive developments in the market. A private export sale announcement of 204,000 MT of corn to South Korea was made by the USDA, along with another 310,000 MT of corn sold to unknown destinations. However, these announcements were overshadowed by the bearish USDA reports.
The USDA’s Crop Production report on Monday revealed that US corn yield was at 186.5 bpa, a slight increase from the November report. Harvested acres were also up by 1.3 million to 91.3 million acres, resulting in a production number of 17.021 bbu, up 269 mbu from November. The quarterly Grain Stocks report showed December 1 corn stocks at 13.282 bbu, 1.207 bbu higher than the previous year.
In the WASDE report, US ending stocks were raised by 198 mbu to 2.227 bbu. This increase was driven by adjustments in production, with carryover from the previous year also up by 19 mbu. World ending stocks were raised to 290.91 MMT, with significant increases in Chinese production.
The Export Inspections report from Monday revealed that 1.49 MMT of corn was shipped in the week of 1/8, with Mexico being the largest destination. The total corn shipped for the marketing year now stands at 28.43 MMT, a significant increase from the previous year.
In international markets, South Korean importers purchased a total of 264,000 MT of corn in tenders overnight, with another tender for 140,000 MT issued for a Wednesday deadline.
Overall, the corn market continues to face challenges, with prices trending downwards. Mar 26 Corn closed at $4.21 1/2, down 24 1/4 cents, while May 26 Corn closed at $4.30 1/2, down 23 1/4 cents. Nearby Cash prices were also down at $3.83 1/4. Despite the market uncertainties, there are still opportunities for export sales and international trade that could potentially boost prices in the future.
