Corn Bounces Back in Afternoon

After midday losses, corn futures came back and closed with gains of 1 1/4 to 3 1/4 cents. Old crop futures were stronger on the day, shrinking carry. July to Dec carry is now 7 1/2 cents. EIA data showed 914,000 barrels per day of ethanol were produced in the week ending July 3. That was up 14k bpd wk/wk, and down just 119k bpd from the pre shutdown MY average. Ethanol stocks were reported at 20.6m barrels, which, for the first time in 10 weeks, was a weekly increase of 456k barrels. Regionally, East Coast stocks were down 176k barrels, and Midwest stocks were up 281,000 barrels wk/wk. Analysts estimate USDA’s weekly update will show 300,000 to 600,000 MT of old crop corn export bookings. New crop export sales are estimated 150k-500k MT. Argentina’s corn harvest was 81.7% complete through July 8. BAGE also reported yields are averaging 8.4 MT/HA (133.8 bpa), and maintains the 50 MMT production forecast. The average pre-report estimate is that USDA will also maintain the 50 MMT corn production. Brazil is reportedly 27% harvested for this year’s second crop. CONAB also lowered their corn production forecast to 100.56 MMT, with a 0.7 MMT cut to second crop. 3rd crop was up 1.2 MMT to Traders anticipate the July WASDE will also cut Brazil’s production, with an average estimate of 100.4 MMT down 0.6 from June.

Jul 20 Corn closed at $3.48 1/4, up 3 1/4 cents,

Sep 20 Corn closed at $3.46 1/4, up 2 3/4 cents,

Dec 20 Corn closed at $3.54 1/4, up 1 3/4 cents,

Mar 21 Corn closed at $3.64 1/2, up 1 1/4 cents,

--- provided by Brugler Marketing & Management

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