Corn Morning Commentary: Double digit gains for the week heading into Big Friday
<div class=\"default-font-wrapper\" style=\"line-height: 1;font-size: 12pt; font-family: Verdana, Geneva, sans-serif;\"><div style=\"line-height: 1;\"><span style=\"font-size: 12pt; font-family: Verdana, Geneva, sans-serif;\">Overnight, corn futures were a little firmer to start but encountered some pressure as the night unfolded, finishing 2-3 cents lower by the morning pause. For the week, corn is on track for decent gains, currently standing ten cents higher when including overnight losses. There are not a lot of new inputs to start; the ‘rip roaring’ headline of the night was Korea’s KFA purchasing a cargo of optional origin corn? There were no 8 AM flashes, either. South American weather will remain of interest, but there does not appear to be much change in the pattern. The Buenos Aires Grain Exchange estimated 25% of Argentina’s corn crop was rated Good or Excellent, down -3% from the previous report. We suspect this does not include the impact of recent rains? Brazil safrinha planting will be the other input, but we see it as a slower moving story? Outside markets are leaning mildly ‘risk-on’ after a mixed nonfarm payroll (jobs) report this morning.<br id=\"isPasted\"> <br>Corn futures held somewhat mixed feature Thursday. The market was surprisingly soft early, trading more than five cents lower mid-morning, but the bull once again defended his turf and corn closed the day 1-3 cents higher. Funds are believed net long just under 370,000 delta-adjusted corn contracts with a CFTC update pending tonight. Cash trade was steady, leaning easier. The weekly export sales report arrived in good stead for corn, beating market expectations. For the week ended Jan 30th, new corn sales were 1,477,200 metric tons, up +9% from an equally solid showing the prior week. Buyers for the week included Mexico, Japan, Korea, and Latin America. Corn sold plus shipped moves up to 44.77 million metric tons (mmt), which is running meaningfully ahead of the prior year’s 34.91 mmt. News services published estimates in advance of the Feb WASDE, due Tuesday.</span></div><br><span style=\"font-size: 12pt; font-family: Verdana, Geneva, sans-serif;\">KJ</span></div>