Corn, beans, and wheat are all trading lower coming out of the weekend. Nearby corn prices are sitting 3 to 4 cents lower into the day session. Corn prices finished in the black on report day, ending near their highs after an initial break after the report’s release. At the bell, futures were fractionally to 3 cents higher and left May with a net 15 cent gain for the week.
Preliminary open interest data from Friday showed net new buying overall for corn, up by 9,406 contracts. The major changes were rolling out of May (-10.4k) and into July (+11.4k) with new players in the Dec contract (+5.2k). CME also showed 4k new calls were added across the corn complex on Friday – that brought the new call/put ratio to 1.128:1.
CME confirmed another 26 deliveries against the March corn contract, that brought the month-to-date total up to 327.
CFTC reported a strong liquidation from the corn specs during the week that ended 3/5. The 43k fewer contracts reduced their net long by 10.7k contracts to 11.4k contracts. The funds were 1.5k contracts more net short at 296.8k contracts after a slight positional change for the week.
The only change for domestic corn S&Ds was a nickel worse cash average price, now at $4.75. The WAOB tightened global corn production by 2.3 MMT. USDA raised Argentina’s production by 1 MMT and left Brazil unchanged. Total global stocks were revised 2.4 MMT tighter to 319.6 MMT – compared to the average trade guess of -1.2 MMT.
Mar 24 Corn closed at $4.26 1/4, up 1/4 cent, currently down 3 1/2 cents
Nearby Cash was $4.12 1/4, up 1 7/8 cents,
May 24 Corn closed at $4.39 3/4, up 1 3/4 cents, currently down 4 1/4 cents
Jul 24 Corn closed at $4.51 3/4, up 2 1/4 cents, currently down 4 1/4 cents
Dec 24 Corn closed at $4.72, up 3 cents, currently down 3 3/4 cents
On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Disclosure Policy here.
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