Wednesday, December 11, 2013
March Corn finished up 3 1/4 at 439 1/4, 1/2 off the high and 5 up from the low. May Corn closed up 3 1/4 at 447 3/4. This was 5 up from the low and 1/2 off the high.
March corn closed 3 1/4 cents higher on the session with an inside trading session. December 14 corn was up 2 1/4. The market saw choppy, two-sided trade overnight but news that 120,000 tonnes of US corn was sold to unknown destination helped to provide underlying support. While the USDA raised demand factors by 100 million bushels yesterday, there are many traders who see 140 to 310 million bushel “increase” in production for the January update and we have seen estimates as high as 400 million bushels. Bears see normal weather next year plus the outlook for a small decline in acres should leave the trade talking about 2.5 to 3.0 billion bushel carryout for the 2014/15 crop season. If we assume 92 million acres planted and a 165 yield, ending stocks would come in near 2.618 billion bushels with a stocks/usage of 19.9%. This would be a 22 year high. Ethanol production for the week ending December 6th averaged 944,000 barrels per day. This is up 3.4% vs. last week and up 14.56% vs. last year. Total Ethanol production for the week was 6.608 million barrels which is the highest weekly total since December 30th of 2011. Corn used in last week’s production is estimated at 99.12 million bushels. This crop year’s cumulative corn used for ethanol production for this crop year is 1.3 billion bushels. Corn use needs to average 94.2 million bushels per week to meet this crop year’s USDA estimate. Stocks were 15.448 million barrels. This is up 2.14% vs. last week and down 22.8% vs. last year.
*Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.