Corn Futures Gain Amid Rising Ethanol Production

Corn futures are experiencing modest gains, with a notable increase in ethanol production. Investors should pay attention to the upcoming March Planting Intention report for additional insights.

Date: 20-03-2025

AI Rating: 6

Corn Futures Overview: Corn futures have shown gains between 1 to 3 cents across the front months, signaling a slight positive trend in the market. The CmdtyView national average Cash Corn price has increased by 2 1/4 cents, now standing at $4.24 1/2.

Ethanol Production: The recent EIA report suggests an increase in ethanol production, rising by 43,000 barrels per day to reach 1.105 million bpd. This rise in production may positively affect demand for corn as it is a key component in ethanol. Such data could indicate higher profitability for ethanol producers, which may reflect positively on associated agricultural stocks.

Acreage Estimates: S&P Global's estimate of 94.3 million corn acres to be planted this spring, up from previous estimates by 800,000 acres, indicates a potential increase in supply. This information could lead to stabilizing or potentially lowering prices in the long term, which investors should monitor.

The current new crop soy/corn ratio of 2.24 leaning towards corn reinforces corn's position in the market against soybeans, which could have implications on trading strategies for investors engaged in agricultural commodities.

It's essential to watch the March Planting Intentions report at the end of the month, as it may provide further insights into supply trends affecting stock prices in the agribusiness sector. Even with the positive short-term gains in corn and ethanol production, long-term strategies should account for potential shifts in crop acreage and market dynamics.

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