Corn futures are starting off the new week with 2 to 2 ¾ cent losses in AM trading. The corn market settled 5 to 6 cents off the lows after a bearish response to USDA data. Prices were still 1.5% to 2.4% in the red for the Friday close. March futures ended the week on a net 13 ¾ cent loss. Dalian Corn Prices in China were 2 to 6 yuan lower on Monday while the US market was closed.
Weekly CFTC data showed managed money funds were building their shorts in corn during the week that ended 1/9. That expanded their net short by 33.4k contracts to 230,723 contracts. Commercial corn hedgers were shown adding positions, with 43k new OI. On net they reduced their net long by 1,942 contracts to 291.
USDA raised their estimate of 2023 corn production 108 mbu to 15.342 bbu via higher average yield and lower area. On net, ending stocks were 31 mbu looser than last month at 2.162 bbu, with ethanol and feed use absorbing some of the extra production. The global S&Ds from USDA set corn production 13.66 MMT higher, though mainly from China (+11.8 MMT) – which is now projected at a record 289 MMT. Brazil was cut 2 MMT to 127 – vs. 17.6 MMT from CONAB. On net world corn stocks were upped by 10 MMT to 325.22 MMT – the trade was looking for 313.8 MMT on average but the Chinese revision was a shocker. The Rosario Board of Trade hiked their estimate of the Argentine corn crop to 59 MMT. USDA made no change to Argentina, at 55 MMT.
Mar 24 Corn closed at $4.47, down 10 3/4 cents, currently down 2 ½ cents
Nearby Cash was $4.22 1/2, down 10 1/2 cents,
May 24 Corn closed at $4.59, down 10 3/4 cents, currently down 2 ½ cents
Jul 24 Corn closed at $4.68 1/4, down 10 3/4 cents, currently down 2 ¼ cents
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