The US corn market was able to maintain slight gains on Wednesday. In Chicago, the March contract closed up 1.00 US cent at 429.50 US cents/bushel. The following months also saw moderate gains and, from a trader's perspective, signaled a cautious stabilization after the recent declines.
Support came, among other things, from the firm soybean market, which had a knock-on effect on the corn complex. In addition, the USDA reported a private export sale of 130,480 tons of corn to unknown destinations in the morning. The market is now looking ahead to this Thursday's weekly export figures. Sales of between 0.8 and 2.1 million tons are expected for the reporting week. A solid result would underpin the current recovery.
The energy sector provided mixed signals. According to the EIA, US ethanol production fell significantly last week to 956,000 barrels per day. Ethanol stocks fell, while exports increased. At the same time, refineries noticeably reduced their ethanol use. Overall, the data had a slightly negative impact, but did not cause the corn market to lose momentum.
Internationally, a purchase from South Korea created additional demand fantasy. An importer secured 65,000 tons of corn in a private tender on Tuesday. On Euronext, March corn gained €0.50 to €191.50 per tonne.
