Corn Falling with Spillover Pressure from Soybeans
Corn prices are down 3 to 5 cents so far on Monday. Futures failed to see buying into the weekend, with contracts down 1 ¼ to 4 ½ cents on Friday. December was down another 18 ¼ cents on the week. Open interest was down 2,464 contracts on Friday, mainly in the December contract. The CmdtyView national average Cash Corn price was down 4 ½ cents at $4.17 ¼.
Following elections in Brazil over the weekend, President Lula da Silva was reelected in a surprise that has sent the Brazilian real down over 9% to the dollar this morning. The weaker currency makes their beans cheaper by comparison to the US.
The Friday Commitment of Traders report Showed managed money and corn futures and options cutting another 84,620 contracts from their net long as of Tuesday. They were net long 146,257 contracts on October 20th, as there was mix of new short interest and longs liquidating.
Export Sales data now has total corn export commitments at 22.192 MMT, which is down 34% from a year ago. That is 26% of the USDA forecast for exports and behind the 37% average sales pace. Actual shipments via FAS data are now 9.54 MMT, up 2% from a year ago and 11% if the USDA number vs. the 5-year average shipping pace of 8%.
AgRural estimates the first corn crop at 58% complete as of Thursday, slightly ahead of the 55% pace from last year.
Late on Friday, NASS issued a correction to the September Crop Production report for KS and NE, citing a processing error that affected plant populations, ear counts and yield. National level yield was raised by 0.3 bpa for the September number to 178.8 bpa. Still, they left their October data alone, with yield at 181.2 bpa.
Dec 26 Corn closed at $4.56, down 4 1/2 cents, currently down 4 1/2 cents
Nearby Cash was $4.17 1/4, down 4 1/2 cents,
Mar 27 Corn closed at $4.70 1/4, down 4 cents, currently down 4 1/4 cents
May 27 Corn closed at $4.79, down 3 1/2 cents, currently down 4 1/2 cents
Dec 27 Corn closed at $4.95, down 3 cents, currently down 3 cents
New Crop Cash was $4.49 5/8, down 3 cents,
On the date of publication, Austin Schroeder 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 Barchart Disclosure Policy here.