Corn futures experienced a broad-based decline on Thursday, with prices falling between 1 ¾ and 4 ¼ cents across various contracts as market pressure pushed values lower into the close. The CmdtyView national average Cash Corn price also registered a decrease, down 3 ¼ cents to settle at $4.22 ½.
Despite the downward price movement, the U.S. Department of Agriculture (USDA) released strong export sales data for old crop corn. For the week ending May 14, old crop corn business totaled 2.125 million metric tons (MMT), significantly exceeding market estimates. This figure marked a 17-week high and represented a substantial 78.5% increase compared to the same week last year.
Key buyers for old crop corn included Japan, which purchased 779,800 MT, South Korea with 463,800 MT, and Mexico accounting for 342,200 MT. New crop business also showed activity, tallying 281,430 MT, making it the third largest total for the current marketing year. Mexico was the primary destination for new crop sales, securing 255,100 MT, with an additional 22,000 MT sold to unknown buyers. Further demonstrating demand, South Korean importers secured an additional 65,000 MT via tender and 66,000 MT through a private deal overnight.
However, potential supply-side factors may have contributed to the market’s bearish sentiment. The Buenos Aires Grain Exchange revised its estimate for Argentina’s corn crop upwards by 3 MMT, bringing the new projection to 64 MMT. An increased supply outlook from a major global producer can often exert downward pressure on international prices.
Specific contract performance on Thursday underscored the general market weakness:
- Jul 26 Corn closed at $4.62 ¼, down 3 ½ cents.
- Nearby Cash was $4.22 ½, down 3 ¼ cents.
- Sep 26 Corn closed at $4.68 ½, down 4 cents.
- Dec 26 Corn closed at $4.85, down 4 ¼ cents.
- New Crop Cash was $4.38, down 3 ¾ cents.
The day’s trading activity, as reported by Austin Schroeder for Barchart, indicated a market grappling with conflicting signals: robust export demand on one hand, and an improved outlook for a key South American crop alongside general market pressure on the other. This combination ultimately led to a lower close across corn futures and cash prices.
