May-22 corn closed near $7.90 per bushel last Friday, up more than 25 cents from Monday. The Dec-22 harvest contract closed at $7.35 per bushel. The general lack of spread among 2022/23 contracts may be reflecting the market’s uncertainty over corn for the next 12 months or more.
S&D and fundamental factors
More than 1.5 MMT of corn was sold the week ending Apr. 7, and total sales sit at 55.769 MMT for the current marketing year (88 percent of USDA’s current projection). China purchased another 680,000 MT of corn last week for 2021/22. New-crop sales of corn to China total 612,000 MT to date.
Weather, macro indicators, and news
Containers are once again backing up in China due to COVID-19 lockdowns. Meanwhile, as many as 100 grain vessels have been unable to leave ports in Ukraine, per UkrAgroConsult. Ukraine’s deputy agriculture minister believes 2021/22 corn exports could fall to 17 MMT vs. slightly above 23 MMT in 2020/21.
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