Corn futures closed with gains across the board on Friday, capping a strong week for the grain market. May contracts rallied 13 1/4 cents for the week, while December rose 14 1/2 cents.
The CmdtyView national average cash corn price climbed 7 cents to $4.39 3/4 per bushel on Friday. USDA reported a private export sale of 148,240 metric tons of corn to an unknown destination, with 78,240 MT designated for old crop and 70,000 MT for new crop.
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Ethanol demand supports prices
Monthly Grain Crush data from NASS showed 474.4 million bushels of corn used in ethanol production in March. That represents a 10.2% increase from February and a 4.76% gain year-over-year.
Marketing year corn grind has reached 3.225 billion bushels, now 20 million bushels above last year’s pace for the same period. This suggests steady industrial demand for corn.
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Speculators turn bullish
Weekly CFTC data showed managed money adding 79,697 contracts to their net long position in corn futures and options during the week ending April 28. That brought their net long position back to 264,103 contracts.
Producer selling remained active. Commercial traders added 89,919 contracts to their net short position, now at 554,336 contracts.
Export commitments surge
Export Sales data shows corn export commitments totaling 75.7 million metric tons as of April 23. That is a 29% increase from the same time last year.
Current commitments represent 90% of USDA’s export projection. That is behind the 93% average pace for this point in the marketing year.
Friday’s settlement prices:
- May 26 Corn: $4.68 1/4, up 3 1/2 cents
- Nearby Cash: $4.39 3/4, up 7 cents
- Jul 26 Corn: $4.80 1/4, up 5 1/2 cents
- Dec 26 Corn: $4.98 3/4, up 4 1/2 cents
- New Crop Cash: $4.55 1/4, up 3 3/4 cents
What’s next for corn
Industry watchers note that strong export demand and solid ethanol usage are providing support. But the pace of export commitments relative to USDA projections could become a concern if it does not accelerate.
Producers continue to hedge aggressively, which may cap upside in the near term. The market will watch for USDA’s next supply and demand report for further direction.
This article was produced with AI assistance and reviewed by our editorial team for accuracy and quality.
