Corn Pushing Higher on Friday Morning with Trade Deal Finalized
Corn price action is trading with 2 to 3 cent gains early on Friday. Futures saw some buying off early lows on Thursday, as contracts closed with 1 to 2 cent gains across the front months. Preliminary open interest was up 6,527 contracts on Thursday. The CmdtyView national average Cash Corn price as up 1 1/4 at $3.75 1/4.
The US/Japan trade deal was finalized on Thursday afternoon, with the White House stating Japan will increase “purchases of United States agricultural goods, including corn, soybeans, fertilizer, bioethanol (including for sustainable aviation fuel), as well as other United States products, in amounts totaling $8 billion per year.” For reference, Japan’s annual buying of those three specific good totaled $2.5 to $4.8 billion over the last 5 years.
Weekly ethanol data showed a total of 1.075 million barrels of ethanol per day produced in the week of 8/29, an increase of 5,000 bpd from the week prior. Stocks were 15,000 barrels higher to 22.564 million barrels.
Export Sales data will be released this morning, with traders looking for between net reductions of 400,000 MT to sales of 100,000 MT for old crop. New crop business is expected to total between 0.9 to 2.2 MMT in the week of August 28.
Census trade data was released on Thursday, showing 6.224 MMT (245.04 mbu) of corn shipped during July. That was the second largest total for that month on record and 16.82% above last year, though it was a 7.74$% drop from last month. The full marketing year shipments are now 66.132 MMT (2.603 bbu) through the first 11 months. Distiller exports totaled 1.058 MMT during July, up 15.32% from June but down 2.93% from last year. Ethanol exports continue to be record, this time at 164.38 million gallons in July, up 27.97% from last year but down 5.35% from June.
StoneX estimates the US corn yield at 186.9 bpa, a drop of 1.2 bpa from the August estimate based off a survey of producers, with production seen at 16.577 bbu.
Brazilian corn exports in August totaled 6.846 MMT, which was nearly triple the July total and 12.96% larger than the August 2024 total.
Sep 25 Corn closed at $3.99 3/4, up 2 cents, currently up 2 3/4 cents
Nearby Cash was $3.75 1/4, up 1 1/4 cents,
Dec 25 Corn closed at $4.19 3/4, up 1 3/4 cents, currently up 2 1/4 cents
Mar 26 Corn closed at $4.37 1/2, up 1 1/2 cents, currently up 2 1/4 cents
On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.