Corn Rallies on Friday Despite Increased Production Estimate

Core Insights - Corn futures experienced a strong close on Friday, with contracts increasing by 10 to 11 cents in the front months, and December closing with a 12 cent gain for the week [1] - The USDA's monthly Crop Production report indicated a yield of 186.7 bushels per acre (bpa), a decrease of 2.1 bpa from August, while acreage was raised by 1.47 million acres planted and 1.356 million acres harvested, leading to a production increase of 73 million bushels (mbu) to 16.814 billion bushels (bbu) [2] - The WASDE report showed a 20 mbu increase in 2024/25 US stocks to 1.325 bbu, with new crop carryout down 7 mbu to 2.11 bbu, and demand raised by 100 mbu due to increased exports [2] Market Data - The USDA raised the old crop number by 1.07 million metric tons (MMT) to 284.18 MMT, attributed to a 3 MMT increase in Brazil's output, while new crop world stocks decreased by 1.14 MMT to 281.4 MMT [3] - CFTC data revealed an addition of 8,442 contracts to the speculative fund in corn futures and options, resulting in a net short position of 99,929 contracts as of September 9 [3] - Closing prices for corn on September 25 included: $3.99 for September, $3.85 1/2 for nearby cash (up 10 1/2 cents), $4.30 for December (up 10 1/4 cents), and $4.47 1/4 for March [3]