Overview
US corn prices showed resilience this week as robust export demand and stable global market conditions lent support. Corn export sales for the 2024/25 season exceeded market expectations, with Mexico, Japan, and undisclosed buyers leading the charge. Although there were no flash sales of corn announced, the positive sales numbers helped lift futures higher on a week-over-week basis.
Market Positioning and Demand Drivers
Investment funds trimmed their net long positions by 11,000 contracts, while smaller, nonreportable traders stepped in as offsetting buyers. Despite the shift in fund activity, market observers characterized the week as “fairly uninteresting.” Still, US corn prices benefited from the continued strong demand for US exports and ethanol, with anticipation building around the upcoming WASDE report (scheduled for Dec 10). Many analysts expect the USDA to adjust US corn demand estimates upward, reflecting this persistent strength in exports and ethanol usage.
Influence of Other Crops and Outlook
US agricultural futures generally closed higher on the week. Good demand for corn, coupled with supply issues in wheat and canola markets, provided additional support. Strong soybean export sales, surpassing 2 million metric tons for the second consecutive week, as well as robust soybean oil sales, also contributed to a generally bullish sentiment.
Looking ahead, traders will be closely monitoring the WASDE release for insights into future demand trends. With US corn prices already buoyed by international demand and steady domestic usage, any upward revision in USDA estimates could further reinforce the current positive price trajectory.
Stay updated for more insights on US corn prices, export trends, and market analyses.
Written by Nick Wood
