Corn Market 5 to 7 Cents Lower

Corn futures are trading 5 to 7 cents lower ahead of the weekly Export Sales report. They ended the Wednesday session with most contracts 10 to 10 3/4 cents lower. Weakness in wheat pressured the market, with the corn-KC wheat spread at 31 cents, nearing the 3-year low posted back in early May. Mexican importers did purchase a cargo of Brazilian corn. That is not surprising due to the expected tighter US supplies and FOB premium to their Southern counterpart. The weekly EIA report shows ethanol production for the final week of May at 1.044 million barrels per day, down 13,000 from the week prior. Stocks were down 71,000 barrels to 22.553 million barrels. Old crop corn export sales are expected to be reported at 500,000-800,000 MT this morning, with new crop at 50,000-250,000 MT in the week of May 30. IEG Vantage (formerly Informa) revised their US acreage estimate to 84.94 million planted acres of corn for 2019, while using an average yield of 174 bpa. A Bloomberg survey found the average analyst estimate for 2019/20 corn ending stocks dropped to 1.772 billion bushels from the May USDA figure of 2.485 billion.

--provided by Brugler Marketing & Management

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