Corn futures closed significantly firmer on Wednesday. In Chicago, the May contract gained 9.25 US cents and traded at 463.25 US cents/bushel, while the December futures contract rose by 8.00 US cents to 489.75 US cents/bushel. Later contracts also trended mostly positive.
Developments on the energy market had a particularly supportive effect. The increasing tensions surrounding the Iran conflict are focusing military action on energy facilities. Corresponding signals from the US and Israel as well as Iran's threats to the Gulf states are fueling concerns about supply risks. Crude oil prices reacted with sharp rises, which also boosted the corn market thanks to an improved outlook for ethanol demand.
Fundamentally, the picture remains mixed. US ethanol production recently fell to 1.093 million barrels per day, while inventories rose. Weaker export and blending figures are weighing in the short term, but are currently being overshadowed by the firm trend in the energy sector.
Market participants are also bullish about the prospect of a smaller US acreage. A survey of producers puts the corn area at 93.68 million acres, which is clearly below the previous year.
The focus is now on the weekly export figures. Sales of the old crop are expected to be between 0.6 and 1.8 million tons. If these are confirmed, the market should maintain its upward trend. On Euronext in Paris, the June price also rose by €2.25 to €210.00/t.
