Commodities sold off across the board after the new Covid variant Omicron caused fear and uncertainty in Friday’s shortened session. Corn prices were in the red most of the day but turned green after better-than-expected export data from USDA took hold.
Corn’s late-session rally helped prices jump more than 1% higher by the close, December futures added 6.5 cents to $5.8625, with March futures up 6.25 cents to $5.9175. Preliminary volume estimates were for 296,804 contracts, falling well below Wednesday’s final count of 544,673.
Corn basis bids were mostly steady to firm on Friday after rising 1 to 8 cents higher at four Midwestern locations. An Iowa processor was the downer, sliding 2 cents lower.
Corn Exports Week through November 18 via USDA
Corn exports were 56.3 million bushels in old crop sales and other 3.5 million bushels in old crop sales for a total of 59.8 million bushels. This came in at the very high end of trade estimates, which ranged between 31.5 million and 61.0 million bushels.
Highlights
- Cumulative totals for 2021/22 marketing year still a bit behind last year’s pace, making it to 342.8 million bushels.
- Corn export shipments faded 20% below last week’s pace
- Firmed 12% above the prior four-week average, with 36.6 million bushels.
- Mexico was the No. 1 destination, with 11.2 million bushels.
Brazil
Brazil’s Agroconsult estimates the country’s 2021/22 corn production will reach 4.882 billion bushels, which would be more than 44% from last season’s drought-addled crop if realized. Brazilian corn plantings are expected to trend 5.6% higher this season.
Europe
The European Commission slightly raised its forecast for 2021/22 EU corn production to 2.693 billion bushels. EU corn import estimates are unchanged from a month ago, with estimates holding steady at 570.8 million bushels.
France’s 2021 corn harvest has moved from 91% completion a week ago up to 97% through November 22, per the country’s FranceAgriMer farm office.
South Africa
South Africa’s Crop Estimates Committee reported that the country’s 2020/21 corn production is expected to improve 6.1% over last year’s output, with an estimated 639.1 million bushels. White corn comprises roughly 53% of the crop, with the remaining acreage in yellow corn.
Source: USDA, Farm Progress
From The TradersCommunity Research Desk