Corn Fading with Crude Oil

To start the week, nearby corn prices are 0.6% to 0.9% lower on the board with nickel losses. Crude oil futures (CLX22) are dropping another full percentage to levels not seen since January. On Friday, corn futures had dropped by 11 1/2 to 13 1/4 cents in the front months. For December that was just enough to result in a fractional loss for the full week. USDA’s weekly Ethanol report showed prices were UNCH from $1.94/gal to $2.55/gal. Corn oil prices were $1-2 dollars weaker to 71-76 cents/b. 

Traders are looking for corn harvest to be 12-14% done nationally, with another small decline in crop condition ratings. NASS will release the updates at 3:00 PM CDT.  

Weekly CFTC data showed managed money funds were 247,909 contracts net long in corn as of the 9/20 settle. That was a 7,266 contract bigger net long position, with net new buying. Commercial shorts were net new sellers during the week, extending their net short by 6.7k contracts to 461,638. That was their strongest net short since June as farmer selling picked up. 

France reported corn harvest as 26% finished through 9/19. That was up from 14% last week and compares to 1% during last year’s campaign. 

Dec 22 Corn  closed at $6.76 3/4, down 11 1/2 cents, currently down 4 1/4 cents 

Nearby Cash   was $6.71 5/8 on Friday, down 14 3/8 cents,

Mar 23 Corn  closed at $6.81 3/4, down 11 1/2 cents, currently down 4 3/4 cents

May 23 Corn  closed at $6.82 1/4, down 12 cents, currently down 4 1/2 cents