Forest Agri Services LTD. -

Corn Futures Continue Higher

Alan Brugler - Barchart - Wed Feb 24, 10:56PM UTC

Despite poor ethanol production performance last week, corn futures rallied 4 3/4 to 7 cents. New crop contracts waited until afternoon to gain on old crop but had narrowed the discount to 82.5 cents (Dec to Mar). The national average corn basis from cmdtyView is 20 cents under March. New crop basis is 29 3/4 cents under Dec. The new crop soy/corn ratio is 2.6, but 2.655 after basis considerations. The February average close price for December futures (used for crop revenue insurance) is $4.57 with two calculation days remaining. Last week’s cold caused ethanol plant closures reflected by EIA data showing a 252,000 bpd drop in production (and reduced corn use) for the week ending 2/19. Average daily production was just 659,000 barrels, the lowest since the COVID closures last May. The low production drew down stocks which were 1.512m barrels lighter on the week at 22.785 million barrels. USDA’s Export Sales are estimated to be between 0.5 and 1.3 MMT for old crop with an additional 50k to 300k MT for new crop sales.

Mar 21 Corn closed at $5.59 1/4, up 5 1/2 cents,

May 21 Corn closed at $5.57, up 4 1/2 cents,

Jul 21 Corn closed at $5.47 1/4, up 4 3/4 cents,

Sep 21 Corn closed at $4.96 1/2, up 6 3/4 cents,

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