Corn Market Under Pressure as Final Trade Day of January Approaches

Heading into the final trade day of January, corn prices are showing weakness on Friday morning, with the nearby contracts declining 2 to 3 cents. Thursday’s session saw modest futures gains ranging from fractional to 2 cent increases, while open interest contracts dropped by 5,812, primarily concentrated in the March and July expirations. The CmdtyView national average for cash corn rose 1 3/4 cents to $3.95 1/4, providing some support despite the downward pressure in futures.

Export Sales Demonstrate Continued Global Demand

The export picture tells an encouraging story. Thursday’s export sales data revealed 1.649 MMT of corn sales during the week ending January 22, representing a week-over-week decline but maintaining a strong 21.4% increase compared to the same period last year. Japan emerged as the leading buyer with 365,100 MT, followed by Mexico’s purchase of 350,800 MT and Colombia’s acquisition of 339,500 MT. These figures underscore persistent international demand despite domestic price pressures.

Record Ethanol Exports Drive Agricultural Trade

Census trade data from November highlighted remarkable momentum in agricultural exports. The month saw 7.305 MMT (287.6 mbu) of corn shipped—the second-largest total on record for November and the largest monthly volume since April of the previous year. More notably, ethanol exports reached a record-breaking 211.33 million gallons for November, marking the second-largest monthly total across any month in history. Distillers exports, meanwhile, declined to 933,557 MT compared to year-ago levels, reflecting shifting market dynamics in co-product demand.

Futures Contracts Show Mixed Performance

On the pricing front, March corn closed Thursday at $4.30 3/4, up 3/4 cent but currently trading down 2 1/2 cents. Nearby cash corn maintains its strength at $3.95 1/4, up 1 3/4 cents. May contracts settled at $4.39, up 1 cent but now down 2 1/2 cents, while July corn closed at $4.45 3/4, up 1 3/4 cents and presently down 2 3/4 cents. This pattern suggests consolidation ahead of the final trade day of January, with participants weighing strong export fundamentals against price weakness in the nearbys.

Information current as of the publication date. For comprehensive commodity market analysis and insights, visit Barchart’s platform for ongoing coverage of agricultural trading dynamics.