Corn Closes Higher on Position Squaring Ahead of Thursday

Corn futures saw 1 to 2 1/2 cent gains in most contracts on Wednesday. Traders were squaring their positions prior to Thursday’s USDA reports. Spillover from strength in soybeans was supportive. This morning’s EIA report showed weekly ethanol production backing off by 34,000 barrels per day in the holiday week of July 5. Weekly production averaged 1.047 million bpd, which was still slightly above the same week last year. Stocks of ethanol were up another 165,000 barrels to 23.009 million barrels. Ahead of Thursday’s monthly USDA update, trade estimates are looking for a slight drop to US production at 13.664 bbu according to a Reuters poll. That comes even though NASS estimated higher planted acreage on June 28, with trade average yield pegged at 165 bpa (-1 mo/mo). WAOB has used the NASS number from the Planted Acreage report every year, and only adjusted the harvested acreage once (1993), in the past 27 years. Analysts estimate that 150,000-400,000 MT of old crop corn was sold for export in the week of July 4, with 100,000-300,000 MT for new crop.

JUL 19 Corn closed at $4.34 1/4, up 2 1/2 cents,

SEP 19 Corn closed at $4.35, up 2 1/2 cents,

DEC 19 Corn closed at $4.39 1/2, up 2 1/4 cents

MAR 20 Corn closed at $4.46 1/4, up 1 3/4 cents

--provided by Brugler Marketing & Management

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