CBOT Corn Rises for Second Consecutive Trading Day

On May 25th, Wednesday, the CBOT (Chicago Board of Trade) corn futures market rose for the second consecutive trading day, with near-term contracts leading the way and the benchmark contract up 1.80%, as there were signs of strength in the spot market.

1. Traders said that a firm and rising cash market for corn boosted sentiment in the futures market. However, weather forecasts showing favorable rainfall in Iowa over the next week led to a closing price for forward contracts below their intraday highs, despite good early crop growth.
2. According to data from the US Energy Information Administration, ethanol stocks in the United States have fallen to their lowest level in six months, exceeding analysts’ expectations. Total ethanol stocks fell by more than one million barrels to 22.04 million barrels in the week ending May 19th, down from 23.19 million barrels the previous week, marking the lowest inventory level since November 2022. Average daily ethanol production has slightly declined to 983,000 barrels, continuing its fifth consecutive week below 1 million barrels per day.