Corn futures saw gains of 3 to 5 ¼ cents on Wednesday, rebounding from early session weakness, with the CmdtyView national average cash corn price rising to $4.25 3/4. This uptick follows the EPA’s announcement of a waiver for E15 sales starting May 1, a move that aligns with seasonal trends of lifting fuel restrictions during summer months.
The recent EIA data further supports this positive momentum, revealing a 23,000 barrels per day increase in ethanol production, pushing stockpiles up to 27.17 million barrels. However, ethanol exports declined to 119,000 bpd, indicating mixed signals in the market. Traders are anticipating Export Sales data on Thursday, with expectations for old crop corn bookings between 0.7 and 1.5 million metric tons.
For market professionals, the key takeaway is the potential impact of the E15 waiver on corn demand and pricing, which could influence both futures and cash prices in the coming months as summer approaches.
Source: nasdaq.com