CBOT corn rises to its highest level in over a month due to strong demand

Chicago, November 7th: On Thursday, corn futures on the Chicago Board of Trade (CBOT) closed moderately higher, with the benchmark period closing up about 0.5%, reaching its highest level in over a month, due to strong demand from importers and domestic users for US supply.

As of the close, corn futures rose by 0.50 cents to 2 cents, with the 12-month futures rising by approximately 1.25 cents to close at 427.50 cents per bushel; The March period rose by about 1.50 cents, closing at 440.50 cents per bushel; The May term rose by about 2 cents and closed at 447.75 cents per bushel.

The most active trading range for the 12-month term is between 422.25 cents and 428.50 cents.

The intraday benchmark period rose to its highest level of 428.50 cents since October 8th.

Traders said that strong demand from importers and domestic buyers supported corn futures. They are waiting for the US Department of Agriculture to adjust corn supply and demand data on Friday.

The daily export sales report released by the US Department of Agriculture shows that private exporters reported selling 120000 tons of US corn to unknown destinations for delivery in 2024/25.

The weekly export sales report released by the US Department of Agriculture shows that as of the week ending October 31, 2024, the net sales volume of corn in the US for 2024/25 was 2766500 tons, which is 18% higher than the average of the previous week and four weeks, and also exceeds market expectations. The net sales volume for the fiscal year 2025/26 is 65500 tons, which was not sold a week ago.

The US Department of Agriculture will release its November supply and demand report on Friday. Analysts on average expect the estimated corn yield in the United States to be lowered from 183.8 bushels per acre in October to 183.7 bushels per acre.

However, some traders have indicated that the US Department of Agriculture may raise its yield estimates after farmers report strong harvests. Traders are still waiting to see if the export data from the US Department of Agriculture reflects the recent strong export demand.

Algeria has issued a tender to purchase up to 9.4 million bushels of feed corn from Argentina or Brazil, and the tender will end on Friday.

South Korea purchased approximately 2.6 million bushels of feed corn from the United States, South America, or South Africa in the bidding that ended early Thursday morning. These corn will arrive in early February.

On Thursday, the estimated trading volume for the benchmark period was 273332 lots, compared to 259467 lots on the previous trading day. The short position is 644100 lots, compared to 654158 lots on the previous trading day.