Corn Falling Back Early on Monday as Traders look for US/China Details

Corn price action is down 3 to 4 ½ cents early on Monday, getting spillover weakness from soybeans. Futures found strength throughout the Friday session, as contracts closed 10-15 cents off the early lows and steady to a penny higher. December managed to post a ¾ cent gain on the week. Open interest was down just 848 contracts on Friday, mainly in the December contracts (-8,821 contracts). The CmdtyView national average Cash Corn price was up 1 cent at $4.84. 

Following last week’s US/China meeting, China dropped tariffs on several US goods, including the tariff on corn.

Heavy rains continue to show up in the forecast for the next week according to NOAA, with 1 to upwards of 4 inches expected from TX to the Great Lakes, and NE to IN.

Commitment of Traders data from CFTC showed managed money trimming back 12,405 contracts to their net long position in corn futures and options. As of September 22 their net long position was 414,437 contracts.

Brazil’s first corn crop is estimated at 34% planted as of Thursday according to AgRural, now ahead of the 32% pace from last year. 

Dec 26 Corn  closed at $5.28 1/4, up 3/4 cent, currently down 3 1/2 cents

Nearby Cash  was $4.84 1/1, up 1 cents,

Mar 27 Corn  closed at $5.42, up 1/2 cent, currently down 4 1/4 cents

May 27 Corn  closed at $5.48 3/4, up 1/2 cent, currently down 4 1/2 cents