Corn Slipping on Wednesday Morning

Open corn cob with green leaves via Kwangmoozaa via iStock

Corn prices are posting fractionally lower trade on Wednesday. Futures felt some late session pressure that took contracts off the Tuesday highs, as most contracts settled fractionally higher, with soon to expire July up 4 ½ cents.

There were 121 deliveries against July corn overnight, with 100 coming from the Bunge house account and 65 stopped by Dreyfus. The oldest long is now dated July 2. 

The remnants of Hurricane Beryl are expected to hit the rest of IL and portions of IN in the next day, with just western OH getting less than an inch. NOAA’s 7-day QPF shows dryness expected for a wide swath of the US out through next Tuesday.

Ahead of Friday’s WASDE release, traders are expecting to see a 25 mbu increase to the old crop carryout figure to 2.047 bbu, likely due to the larger June 1 stocks. New crop is expected to see a sizable shift higher, with 2.289 bbu projected, a 158 mbu hike from last month if realized, due to the larger acreage. 

The WAOB will make a few changes to the new crop production based of the June acreage data, with yield largely expected to remain at 181 bpa. Production is seen at 15.113 bbu, a 253 mbu increase from the June WASDE is realized. 

Jul 24 Corn  closed at $4.00 1/4, up 4 1/2 cents, currently down ½ cents

Nearby Cash  was $3.82, up 1 3/4 cents,

Sep 24 Corn  closed at $3.94, up 3/4 cent, currently down ½ cents

Dec 24 Corn  closed at $4.08 1/2, up 3/4 cent, currently down 1 ½ cents

New Crop Cash  was $3.68 1/2, up 1 cent,

On the date of publication, Alan Brugler 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.