Corn futures were higher in early trading Thursday, with prices up between 2 cents and 4.5 cents so far in the morning after contracts gained 3 cents to 8.25 cents in Wednesday’s settlement. The front months led the rise, while open interest declined, suggesting some liquidation rather than fresh long buildup. Cash corn was also firmer, with the national average reported up 7 cents to $3.92 1/4.
Traders are also weighing a steady stream of ethanol and grain-crush data ahead of scheduled export sales results later Thursday. A short holiday period is in play, with markets observing the July 4 Independence Day closure on Friday, followed by a normal opening on Sunday night.
Key takeaways
- Corn prices edged higher in early Thursday trade after Wednesday’s gains across the nearby curve.
- Catalyst: ethanol production and storage data from the U.S. Energy Information Administration, plus a grain-crushing report pointing to higher corn use for ethanol.
- Open interest fell, indicating modest short covering rather than a major new positioning push.
- Next focus: Thursday’s export sales report could add direction, with traders expecting old-crop and new-crop figures within a defined range.
- Holiday trading ahead may reduce liquidity through the weekend, affecting near-term price action.
What drove the move
According to EIA’s weekly update, ethanol production totaled 1.117 million barrels per day in the week of June 26, rising by 27,000 barrels per day from the prior week. Ethanol stocks increased again, adding 105,000 barrels to reach 24.690 million barrels.
The EIA report also showed ethanol exports improving by 5,000 barrels per day to 126,000 barrels per day. However, refiner inputs of ethanol declined by 2,000 barrels per day to 9221,000 barrels per day, a detail that investors may parse for near-term demand and supply balance within the ethanol supply chain.
After the Wednesday close, the NASS Grain Crushing report highlighted corn demand for ethanol at 471.78 million bushels in May, the largest total in the dataset since 2015. The report said this was 9.7% above April and 6.16% higher than the same period a year earlier. Marketing year-to-date shipments were reported at 4.127 billion bushels, up 1.34% (55 million bushels) compared with the same point last year.
Market reaction and positioning
Futures closed Wednesday up across the board, with front months stronger than deferred contracts. The largest gains came from the near end of the curve, which typically draws attention from commercial hedgers and active trade flows when nearby supply and demand signals are moving.
Open interest decreased by 6,265 contracts on Wednesday, with December showing the biggest decline at 9,264 contracts. The report’s commentary suggested the lower open interest points to modest short covering—meaning some reduction in short positions occurred as prices firmed, rather than an aggressive build in new long exposure.
In physical delivery activity, 262 delivery notices were issued against July corn overnight. While that does not alone determine price direction, it provides additional information about how much attention is being paid to the nearby delivery month.
Cash and contract performance
According to the CmdtyView national average, cash corn rose 7 cents to $3.92 1/4.
On the futures side, July corn closed at $4.21, up 8.25 cents, and was up 4.5 cents at the time of reporting in Thursday’s session. September 2026 corn finished at $4.22 3/4, up 6 cents, and was up 2.75 cents. December 2026 corn closed at $4.42 1/4, up 6.25 cents, and was up 2.25 cents. New crop cash was quoted at $3.95 5/8, up 4 cents.
What traders are watching next
Export Sales data is scheduled for release this morning. According to Reuters-surveyed expectations, traders were looking for old-crop corn sales in the week ending June 25 in a range of 0.5 million to 1.1 million metric tons. New-crop business was pegged to total between 0.4 million and 1.1 million metric tons.
With the July 4 Independence Day holiday approaching, Friday’s market closure may tighten liquidity and influence how traders position into the weekend. Investors will likely focus on whether export results confirm improving demand signals or shift expectations for the remainder of the marketing cycle.
