Corn Market: Developments at CBoT and Euronext on Friday
Corn Market: Developments at CBoT and Euronext on Friday
Corn futures at the Chicago Board of Trade (CBoT) closed higher on Friday. The most actively traded March contract rose by 5 cents, settling at 440 cents per bushel. This translates to 173.34 USD per ton or approximately 157.74 EUR per ton (based on an exchange rate of 1 USD = 0.91 EUR). This represents a gain of 7 cents (1.6%) for the week.The March contract fell by 0.75 EUR at the Euronext, closing at 205.75 EUR per ton. However, every week, it gained 2 EUR (1%).
Key Influences
- CBoT:
- Strong Export Demand: Weekly USDA export bookings exceeded expectations, supporting prices.
- Technical Buying: Breaking through resistance at the 50-day moving average triggered additional purchases, pushing the March contract to a two-week high.
- Euronext:
- Stronger Euro: A firm euro weighed on export competitiveness.
- Harvest Pressure: Supplies from Western Europe's nearly completed corn harvest exerted downward pressure. In France, 94% of corn fields had been harvested by December 2, compared to 89% the previous week and 98% in the five-year average.
U.S. Export Performance
- Current Season (2024/25):
- Export commitments: 34.2 million tons, an increase of 39% compared to last year.
- Already shipped: 11.4 million tons, representing a 31% increase year-over-year and 19% of the expected total (compared to 16% on average in prior years).
- 58% of the USDA’s forecast for the entire marketing year has already been sold, 8 percentage points above the average of recent years.
Technical Developments
On Thursday, strong demand drove prices higher at the CBoT, breaking through resistance at the 50-day moving average. On Friday, the March contract exceeded the 20-day moving average, reaching a two-week high.Strong export demand and anticipation of the WASDE report will likely keep the corn market active in the coming days.