Corn Market Recap - 1/12/2017

January 12, 2017 3:46PM CST

March Corn finished up 1 at 358 1/4, 1 3/4 off the high and 5 1/4 up from the low. May Corn closed up 3/4 at 364 3/4. This was 5 up from the low and 1 3/4 off the high.

March corn closed 1 cent higher on the session as a late surge in fund buying and strength in soybeans and wheat helped to pull the market 5 1/4 cents up from the lows into the close. The USDA Supply/Demand and grain stocks report for corn were considered mixed versus trade expectations as December 1st stocks came in at 12.384 billion bushels, up 84 million bushels from trade expectations and a new all-time record high. Ending stocks for the 2016/17 season came in at 2.355 billion bushels which was 30 million bushels below trade expectations and still the highest since the 1987/88 season. US final corn production came in at 15.148 billion bushels, down 48 million from trade expectations. Yield was revised lower to 174.6 bushels/acre (still a record high) and harvested acres were down slightly. Feed usage was revised lower by 50 million and ethanol usage up 25 million. The Brazilian corn crop was estimated at 86.5 million tonnes compared to average estimates of 87.2 million and the Argentine corn production was estimated at 36.5 million tonnes compared to the average estimate of 36.3 million. World ending stocks are estimated at 220.98 million tonnes compared to the average guess of 221.9 million. Net weekly export sales came in at 603,300 tonnes for the current marketing year and 151,700 for the next marketing year for a total of 755,000 tonnes. As of January 5th, cumulative corn sales stand at 64.3% of the USDA forecast for 2016/2017 (current) marketing year versus a 5 year average of 58.9%. Sales of 591,000 tonnes are needed each week to reach the USDA forecast.

RJO Futures | 222 South Riverside Plaza, Suite 1200 | Chicago, Illinois 60606 | United States
800.441.1616 | 312.373.5478

This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.