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Corn Showing Gains as Ethanol Production Explodes to New Record

Corn futures are trading with 1 to 2 ½ cent gains so far on Wednesday, as EIA reported a robust ethanol figure. The CmdtyView national averageCash Corn price is up 2 1/2 cents at $3.84 3/4. 

EIA data from this morning showed ethanol production exploding 98,000 barrels per day week/week or 8.92% to a record (5.75% above the previous record) 1.196 million barrels per day. Ethnaol stocks did seen a build of 821,000 barrels to 24.473 million barrels, mainly in the Gulf (+423,000 barrels) and the East Coast (+616,000 barrels), possibly gearing up for exports. Exports were up 6,000 bpd to 119,000 bpd, as refiner inputs for ethanol were 70,000 bpd higher to 841,000 bpd.

 

Several South Korean importers had tenders overnight, purchasing a total of 402,000 MT of corn. USDA confirmed some of that was from the US, with a private export sale announcement  of 136,000 MT to South Korea.

USDA Export Sales data will be released on Thursday morning, with traders looking for 0.6 to 1.4 MMT of corn sold in the week of January 8.

Mar 26 Corn is at $4.22, up 2 1/4 cents,

Nearby Cash is at $3.84 3/4, up 2 1/2 cents,

May 26 Corn is at $4.29 3/4, up 2 cents,

Jul 26 Corn is at $4.35 3/4, up 1 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.

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