Chicago Board of Trade corn futures closed fractionally higher on Thursday, firming late in the trading session despite continued concern that a slowdown in US production of corn-based ethanol will curb demand for the grain, traders said.
Around a fifth of ethanol production capacity in the United States is due to come offline by the end of the month, according to the Renewable Fuels Association, as the coronavirus pandemic crushes energy demand and sinks prices for the biofuel.
Still, CBOT May corn ended up 1/4 cent at $3.48-3/4 per bushel. Robust weekly export data lent support. The US Department of Agriculture reported export sales of US old-crop corn in the week ended March 19 at 1,814,200 tonnes, a marketing year high that topped a range of trade expectations for 900,000 to 1,800,000 tonnes.
The International Grains Council (IGC) forecast record world grains production in the 2020/21 season, while warning projections were tentative until the progress and duration of the coronavirus pandemic becomes clearer.