Corn Futures Gain Ground Amid Surging Ethanol Production and Export Demand

IfIWereOnChain · 2025-12-23T17:48:50+00:00

Corn futures rose by 2 to 4½ cents, driven by strong purchasing and ethanol production. Cash prices increased to $3.96¼, bolstered by robust export sales and rising ethanol output, signaling strong market demand and positive production trends.

IfIWereOnChain

2025-12-23 17:48:50

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Corn futures extended their Wednesday rally, with contracts climbing 2 to 4½ cents at midday as robust purchasing activity and ethanol production pushed markets higher. The CmdtyView national average cash corn price climbed 4½ cents to $3.96¼, reflecting broad-based strength across the complex.

Export momentum remained impressive, highlighted by a USDA-reported private sale of 177,055 metric tons to Mexico. Meanwhile, South Korea’s importer acquired 268,000 MT through an overnight tender, underscoring international appetite for U.S. supplies. Brazil’s December corn exports are tracking toward 6.35 MMT according to ANEC, up 0.05 MMT from the previous week.

Ethanol Production Reaches New Heights

The week ending December 12 marked another milestone for ethanol production. EIA data showed corn grinds surged to 1.131 million barrels per day, up 26,000 bpd from the prior week. Despite the elevated processing rates, inventories tightened by 157,000 barrels to 22.353 million barrels, indicating strong downstream demand absorption.

Ethanol exports accelerated meaningfully, advancing 66,000 bpd to reach 191,000 bpd. Refiner inputs climbed 55,000 barrels per day to 906,000 bpd, suggesting continued strength in fuel blending demand alongside robust ethanol production.

Futures Complex Performance

Mar 26 Corn contracts gained 4½ cents to $4.41, while May 26 advanced 3½ cents to $4.48. Jul 26 futures climbed 2¾ cents to $4.53¾. Nearby cash corn mirrored the broader upside, moving up 4½ cents to $3.96¼ in line with the underlying strength in both production and trade flows.

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