By 1 p.m. US Eastern Time, the May corn futures contract on the Chicago Mercantile Exchange (CME) saw a rise of 5 cents per bushel, reaching $4.66 per bushel. The July contract was up by 4 cents, closing at $4.74 per bushel. This uptick in prices follows a period of bargain buying, with market participants looking to capitalize on lower prices.
Asian and South Korean Corn Futures:
In Asia, futures on the Dalian Commodity Exchange saw gains as well. The May contract increased by 18 yuan per tonne, settling at 2,336 yuan ($321) per tonne. The July contract also rose by 17 yuan, closing at 2,377 yuan per tonne.
South Korean buyers have been active, securing 263,000 tonnes of corn through tenders and private deals. Notable transactions include:
NOFI purchasing 65,000 tonnes from Pan Ocean at $248.70 per tonne CFR for August 5 arrival.
The Feed Leaders Committee (FLC) acquired 66,000 tonnes from ADM at $248.49 per tonne CFR for July-August shipment.
The Feed Buying Group (FBG) secured 65,000 tonnes from Mitsui at $248.69 per tonne CFR Incheon for June-July shipment.
These deals are likely sourced from US Pacific ports.
Ukrainian and Russian Corn Developments:
In Ukraine, corn prices were stable, with internal DAP market prices holding steady. The FOB prices for May-June shipments ranged between $252-255 per tonne at Pivdennyi-Odesa-Chornomorsk (POC), while bids were in the $248-250 per tonne range. Buyers showed interest at $241 per tonne for spot and May delivery.
In Russia, the spring grain planting progress reached 25.8% of the forecasted 28.83 million hectares for 2025, as of Tuesday. 7.44 million hectares have been sown, marking a 35% increase compared to the same period in 2024.
South American Corn Market:
In South America, corn futures showed varied movements. Argentina’s corn futures declined across most contracts, except for June-loading contracts, which saw slight gains. Brazil’s corn market remained stable, with the FOB premium for June loading staying at 92 cents per bushel above the July CME futures.
Brazil’s 2024/25 summer corn crop harvest reached 71.9% of the planted area of 3.7 million hectares, surpassing both last year’s 63.1% and the five-year average of 68.1%. Despite this progress, corn exports for April were revised slightly downward to 48,263 tonnes, compared to 48,094 tonnes last week, though still lower than the 76,655 tonnes exported in the same period last year.
US Corn and Ethanol Market Updates:
In the US, CIF Gulf premiums for May loading increased by 2 cents per bushel, reaching around 77 cents per bushel over the May CME futures contract. FOB Gulf premiums for the same period were reported around 82 cents per bushel. The FOB Pacific Northwest premiums for May loading remained steady at $1.01 per bushel above the May CME futures contract.
In terms of ethanol production, the US saw a rise of 7,000 barrels per day to 1.040 million barrels per day in the week ending April 25. This led to the consumption of around 2.68 million tonnes of corn, slightly up from the previous week’s 2.66 million tonnes. Meanwhile, ethanol stocks fell by 92,000 barrels, settling at 25.389 million barrels, according to EIA data released on Wednesday.
The market appears to be stabilizing, with strong demand from international buyers and favorable planting conditions in key producing countries. The global rebound in corn futures is a reflection of market participants seeking opportunities amidst fluctuations in pricing and production.
