Corn basis and spreads remain firm despite a record yield, driven by strong ethanol production, higher export sales, and lower stocks-to-use projections. Basis has rallied while spreads have tightened, signaling strong demand despite an initially undersold farmer position.

Corn export sales are off to a strong start, up 1.4% from last year, with shipments 34% higher. While some believe countries are frontloading due to political uncertainty, steady shipments suggest strong demand. Key buyers like Mexico and Colombia are purchasing record amounts, while China remains absent. With global stocks tightening among major exporters, the U.S. is well-positioned to capture more business, especially with lower corn prices supporting demand.