Midday corn prices are sitting fractionally to 1 ½ cents in the black. Futures were in the black through the morning, before dropping on the WASDE reaction. Traders added 25.4k new option positions in corn yesterday, including 16k new calls. Into report day, CME had 1.176 calls for every put across the corn market. The cash price for corn was left unchanged at $4.80/bu.
WASDE data showed U.S. corn stocks loosened by 10 mbu to 2.172 bbu, coming out of FSI (but not ethanol). Traders were looking for a 12.7 mbu tighter carryout on average.
The global updates from WAOB had world corn production 3.16 MMT lower via a 3 MMT cut to Brazil now at 124. The trade was looking for a 2.2 cut to Brazil, though CONAB took their estimate down to 113.7 MMT. Most of that came out of their 2nd crop, cut via acreage. WAOB took the lower output out of stocks, which were 3.16 MMT tighter to 322 MMT. The average trade guess was to see a 324.6 MMT corn carryout.
USDA announced a larger private export sale for 200k MT of corn to Colombia for 23/24 delivery. The weekly data showed 1.22 MMT of corn as sold during the week that ended 2/1. That was a 3-wk high and came in at the top end of the expected range. The season’s corn commitments sat at 34.91 MMT as of 2/1, a 30% increase from last year and 65.4% of the WASDE forecast.
Mar 24 Corn is at $4.35 1/2, up 1 1/4 cents,
Nearby Cash is at $4.16, up 1 1/4 cents,
May 24 Corn is at $4.47 1/4, up 3/4 cent,
Jul 24 Corn is at $4.55 3/4, up 1/4 cent,
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