Corn futures maintained their upward momentum on Wednesday, with most nearby contracts rising by up to 2.5 cents. The CmdtyView national average Cash Corn price increased by 1.25 cents to $4.33 1/2. This price stability comes amid a notable decline in ethanol production, which fell by 31,000 barrels per day to 1.009 million, contributing to a decrease in stock levels.
The drop in ethanol output is significant as it impacts corn demand and could influence pricing trends in the sector. With the USDA’s Export Sales report anticipated to show sales of 1-1.9 million metric tons of old crop corn, market participants will be closely monitoring these figures, especially following Taiwan’s recent purchase of 65,000 metric tons from the U.S.
For traders and analysts, the current pricing dynamics and production shifts suggest a potential tightening in corn supply, which could lead to further price adjustments in the near term.
Source: nasdaq.com