Spot corn futures closed last week basically unchanged from their close Friday, May 20, at $7.77 per bushel. During the mid-week sell down, prices dipped to $7.65 per bushel before rallying it all back during trading on Friday.
S&D and fundamental factors
Corn exports the week ending May 20 were 66.9 million bushels, well ahead of the pace needed to hit USDA’s target for 2021/22 of 2.5 billion bushels. Last Monday, U.S. corn was trading at roughly an 80-cent discount to Brazilian corn for delivery in September, setting the stage for more U.S. purchases.
Ethanol production remains very strong, seeing a jump the week ending May 20 up to 1.014 million barrels per day—up from 991,000 barrels per day from the week prior and 8 percent higher than a year ago.
Weather, macro indicators, and news
Ukrainian grain storage is said to be near full capacity, and making headlines last week was the UN “negotiating” with Russia to allow Ukrainian exports out of the port of Odesa. Russia in return was asking for some sanctions to be lifted, but that was immediately shot down. Confidence remains low that something could actually be worked out, but talks may be ongoing.
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