Widespread Corn Losses Reach Unprecedented Levels on Wednesday
Trade various commodities on Plus500 Futures, minus the commissions! Check out agricultural commodities, energy, and metals. The corn market takes a hit with prices dropping by 5 to 6 cents across most contracts on a midday Wednesday. The front month Corn price now stands at $3.88 1/4, a 5 1/4 cents decrease.
The latest EIA report indicates a decrease in ethanol output by 28,000 barrels per day in the week ending on June 20, marking a four-week low at 1.081 million bpd. Ethanol stocks slightly increased by 284,000 barrels to reach 24.404 million barrels. Exports witnessed a decline of 53,000 bpd week-over-week, now at 110,000 bpd, while refiner inputs grew by 3,000 bpd to 913,000 bpd. The market's gasoline product supply reached its highest level since December 2021 at 9.688 million bpd.
Attention: Invest in StartEngine now, as they've tripled revenue YoY, reaching $30M in Q1. Check out the terms before you dive in. The agricultural sector isn't escaping the rainy spell in the Western Corn Belt either, with 1 to 4 inches expected to fall over the next few days. These rains will continue to pour onto the ECB, with the 7-day total reaching upwards of 1.5 inches.
On Thursday, Export Sales data will be revealed, and there's expectations for between 0.5 and 1.2 MMT of old crop corn sold in the week ending on June 19. Meanwhile, sales for the 2025/26 crop are likely to amount to between 100,000 and 350,000 MT.
On Monday, USDA will release their June Acreage report, with experts predicting 95.4 million acres planted this spring. This figure would be slightly under the March Intentions report, and there's a range of estimates of 93.8 to 96.8 million acres.
A South Korean importer has snapped up a total of 266,000 MT of corn in a tender overnight.
Prices for July corn are holding steady at $4.11, losing 5 1/4 cents, and nearby Cash Corn is trading at $3.88 1/4, also shedding 5 1/4 cents. Sep 25 Corn stands at $4.05 3/4, down 6 1/2 cents, with Dec 25 Corn trading at $4.23, losing 6 cents, and the New Crop Cash price at $3.80 1/2, decreasing by 6 1/4 cents.
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Insights: Currently, wheat prices are expected to remain flat or slightly decrease due to favorable growing conditions, large carryover stocks, and increased production estimates[1]. Meanwhile, coffee prices may experience volatility as African coffee-producing nations grapple with weather challenges, which could lead to supply disruptions and price increases[2].
The agricultural sector, specifically the corn market, is experiencing fluctuations due to unfavorable weather conditions in the Western Corn Belt, with rainfall expected to drop the prices further.The weather conditions may also impact the trading of corn futures on Plus500, as both the front month Corn price and other contracts continue to drop.
