Decreased corn planting intentions drive futures prices up

Lower corn planting intentions sent futures higher on Thursday, with corn futures posting their largest one-day rally since July. The USDA estimated March 1 corn stocks and projected 2024 corn plantings below trade estimates, leading to a surge in prices. Winter wheat futures also followed corn higher, despite all-wheat stocks and plantings slightly topping expectations.

In trading on Thursday, May corn jumped 15¼¢ to close at $4.42 per bushel, while Chicago May wheat added 12¾¢ to close at $5.60¼ per bushel. Kansas City May wheat added 7¢ and closed at $5.85¼ per bushel, while Minneapolis May wheat dropped 6¢ and closed at $6.45 per bushel. May soybeans lost 1¢ to close at $11.91½ per bushel, with the September future and beyond showing higher prices.

The US dollar index closed higher on Thursday, while US gold futures soared despite the strengthening dollar, with the April contract adding $26.80 to close at $2,217.40 per ounce.

US equity markets were mixed on Thursday, with the S&P 500 notching its 22nd record-high close of 2024 and its best first quarter since 2019. The Dow Jones Industrial Average also closed at a record high. US crude oil prices climbed, with the May West Texas Intermediate light, sweet crude future adding $1.82 to close at $83.17 per barrel.

Overall, the lower corn planting intentions and the positive performance of other commodities and markets made for an eventful and dynamic trading day on Thursday.