In Chicago, corn gained 2.75 US cents in March and closed at 430.50 US cents/bushel. The May contract also rose by 3.50 US cents to 442.00 US cents/bushel. The other futures also trended firmer. On Euronext, June lost 0.25 € to 191.50 €/t.
From a trader's point of view, the bullish sentiment is mainly due to stable fundamental data. US ethanol production in the week ending February 20 was 1.113 million barrels per day, only 5,000 barrels below the previous week. Inventories rose moderately to 25.646 million barrels. Ethanol deliveries fell slightly to 141,000 barrels per day, while refinery feedstocks remained constant at 866,000 barrels per day. Overall, the sector continues to signal a solid demand base for corn.
The market is now eagerly awaiting the export figures for the week ending February 19. Expectations are for 0.9 to 1.8 million tons from the old crop. If sales are at the upper end of the range, this should provide additional support for the market.
Stimulus also came from the international side: Taiwan bought 65,000 tons of corn, presumably of US origin. Shortly before the end of the pricing phase for US crop insurance, corn thus remains well supported, even if the average December level of 461.00 US cents/bushel is well below the previous year.
