Corn futures retreat as USDA confirms South Korea export sale
Front-month contracts fell 5 to 6.5 cents on Wednesday, while ethanol production rose and weather forecasts bring relief to key growing regions.
Corn futures declined by 5 to 6.5 cents across front-month contracts on Wednesday, reversing early gains to settle into midday losses. The CmdtyView national average Cash Corn price dropped 6.25 cents to $3.98¼, reflecting a market that is currently digesting recent supply data and positioning for upcoming government reports.
The United States Department of Agriculture (USDA) reported a private export sale of 136,000 metric tonnes of corn to South Korea for the 2026/27 shipment. This transaction provides a baseline for trade flows, though market participants are now looking ahead to the weekly Export Sales report scheduled for release on Thursday.
Traders are anticipating significant volume in the upcoming data, with expectations for old crop export sales ranging between 0.9 million and 1.5 million metric tonnes. New crop sales are forecast to fall within a range of 100,000 to 600,000 metric tonnes, a window that suggests moderate but not overwhelming demand from international buyers at this stage of the cycle.
In the energy complex, ethanol production increased by 19,000 barrels per day to reach 1.108 million barrels per day for the week ending 5/29, according to Energy Information Administration data. Despite the rise in production, ethanol stocks drew down by 362,000 barrels to 24.606 million barrels, supported by a 33,000 barrels per day increase in exports to 135,000 barrels per day.
Weather patterns are also influencing market sentiment, with the National Oceanic and Atmospheric Administration forecasting 1 to 2 inches of rainfall across much of the Central and Western Corn Belt. This precipitation is expected primarily ahead of the weekend, offering relief to crops in those regions, while the Eastern Corn Belt from central Illinois to Ohio is expected to see very little precipitation.
