The corn market was slightly firmer on Tuesday. The March contract in Chicago rose by 1.00 US cent and closed at 434.25 US cents/bushel. Later dates also trended upwards, albeit only moderately.
Support came from the energy market. The strength in crude oil is having a supportive effect because it is improving margins in ethanol production and thus keeping demand for corn stable. Traders are therefore eagerly awaiting this Wednesday's data on ethanol production from the US Energy Information Administration (EIA) for the past week. Production is expected to remain largely stable.
The export market also provided fresh impetus for demand. This morning, the USDA reported private sales of 196,000 tons of US corn to unknown destinations. Such daily export reports are closely followed in the trade, as they are seen as a short-term indicator of international demand.
The international market also remained on the move. Import buyers from South Korea issued several tenders overnight and together secured 133,000 tons of corn. Such tenders are considered an important indicator of the competitiveness of US goods in global trade.
Overall, the combination of stable demand, export business and support from the energy market means that corn prices are currently holding their own, even if the upward trend has so far remained moderate. As a result of the sharp rise in energy prices within the EU, maize prices for June rose by €2.50 to €201.25 per tonne.
