Corn prices fell slightly overnight, dropping 0.25% ahead of Thursday's session. This is a continuation of Wednesday's trends when March futures lost 2.5 cents, closing yesterday at $ 3.8050.
Traders will have additional data that can be experienced later this week, in particular, the USDA weekly export report tomorrow morning, as well as estimates of the agency’s annual crop area, which will be presented at the Ag Outlook Forum in Washington , DC, later in the week.
Yesterday, corn prices were mostly stable, but they rose by a cent in the Illinois river terminal and by 3 cents in the Indiana processor. Farmer sales this week were generally sluggish.
In anticipation of the Ag Outlook Forum USDA, analysts expect the agency to report 93.6 million acres of US corn this year. If average yields could reach 176.5 bushels per acre, that would mean total production of 15.111 billion bushels and final stocks of 2.443 billion bushels.
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In Europe, the Coceral grain trade lobby predicts that corn production in the EU in 2020 will be 2.559 billion bushels, which if sold will be 6.6% higher than last year.
A preliminary report from CBOT showed daily futures at 341,346, with open interest tracking 1,932 above. The volume of 43.539 options is still strongly favored by calls (29.092) compared to puts (24.447). The implied volatility for March contracts that expire tomorrow is currently 17.87%.
Foreign markets today did not see much activity. March futures in China added pennies, rising just above $ 6.78, while Paris futures held mostly at $ 4.64. At noon at the auction after adjustments for volumes and currencies.
- Zimbabwe has banned farmers from selling corn to anyone other than the State Grain Market Council, as the government is taking measures to lower prices for the main product after a severe drought hit the country.
- In the United States, the futures for corn almost did not change overnight after yesterday's trading, reaching the highest level in three years.
- US corn prices will drop to $ 3.50 per bushel, while in the near future it is unlikely to cost $ 5.
