Corn Market: Mixed Performance at CBoT on Wednesday
Corn trading at the
Chicago Board of Trade (CBoT) closed mixed on Wednesday. The most traded March contract fell by
0.75 cents to
448.25 cents per bushel, equivalent to
168 EUR per ton, after four consecutive days of gains. Later-dated contracts managed slight increases. The March contract gained 1.25 EUR on Tuesday at Euronext, closing at
208.50 EUR per ton.
Market Influences
- WASDE Report Impact: Traders are still processing the significant reductions in U.S. and global corn-ending stocks outlined in Tuesday’s WASDE Report. Corn prices reached a five-month high at the CBoT but encountered technical resistance that limited further gains.
- South American Crop Prospects: Expectations of strong harvests in South America also capped upward momentum. The Rosario Grain Exchange projects Argentina’s corn harvest at 50 to 51 million tons, aligning closely with the USDA’s forecast of 51 million tons.
- Ethanol Demand: Robust demand from the ethanol industry continued to support the market. According to the EIA data for the week ending December 6:
- Ethanol production increased by 5,000 barrels per day to 1.078 million.
- Ethanol stocks decreased by 355,000 barrels, reaching 22.648 million barrels.
Export Sales Expectations
Ahead of Thursday’s weekly export sales report, analysts estimate:
- 2024/25 corn sales: 1.1 to 1.9 million tons.
- 2025/26 corn sales: 0 to 100,000 tons.
The combination of solid demand, particularly from the ethanol sector, and ongoing adjustments to global stock forecasts is keeping the corn market active, but external factors such as technical resistance and promising South American harvests restrain it.
