Corn futures in Chicago were mostly stable to slightly firmer on Tuesday. The front month of May was unchanged at 454.00 US cents/bushel, while the new crop December contract gained 1.75 US cents to close at 481.75 US cents/bushel. The July contract fell slightly by 0.25 US cents. Overall, the market is moving in a narrow range with no clear direction.
Support came from the energy market. Crude oil rose significantly, which tends to improve margins in the ethanol sector and thus has a latent bullish effect. However, ahead of the EIA data expected on Wednesday, market participants are only expecting ethanol production to remain stable, which will not provide any new impetus.
On the supply side, however, bearish factors predominate. In Ukraine, the maize area is expected to increase to 4.42 million hectares, while the total grain area will also be expanded. The trend in the EU is also pointing upwards. The industry association Coceral raised its forecast for the maize harvest to 60.7 million tons. This signals a better supply situation and limits the upside potential. The June price on Euronext rose by €0.75 to €207.75/t.
All in all, the maize market remains well supplied, while external impulses are currently not strong enough to trigger a sustainable trend. Traders are therefore acting cautiously.
