Along with nearly all other commodity markets, corn futures experienced a sharp sell-off last week as pandemic concerns stoked fear and prompted contract liquidations. Dec-21 futures ended the week down $0.3175 per bushel from last Monday’s settle to close at $5.37 per bushel Friday. Similar declines were present throughout 2021/22 contracts.
S&D and fundamental factors
The Pro Farmer crop tour has presented mixed results from its survey of the corn crop across the Grain Belt. In Iowa, the tour is estimating corn yield at 190.8 bushels per acre, lower than USDA’s estimate of 193 bushels per acre (bpa).
Weather, macro indicators, and news
Reports are surfacing suggesting EPA will recommend lowering the biofuel blending rates below those of 2020, but there are also reports of the opposite. For corn-derived ethanol, the mandated blended level was maxed out at 15 billion gallons in 2016, which would account for roughly an estimated 5.37 billion bushels of corn. It is worth noting corn usage has been well below that since before the start of the pandemic.
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