Morning Gains in Corn Market

Corn futures are set to start the new month of action with overnight gains of 5 1/2 to 6 3/4 cents. Corn prices rallied out of the report, taking March and May futures above the $7/bu mark. Prices faded in the afternoon for net gains of 5 3/4 to 8 cents on the day in old crop. Through the month of September, Dec futures were a net 7 cents higher. The board stayed in a 45 1/2 cent range through the month, the tightest monthly range for Dec since January ’22. 

CFTC reported this afternoon that managed money firms were 10,055 contracts less net long on 9/27 on reduced exposure. The funds closed out 18.8k longs and 8.8k shorts for a net long of 237,854 contracts. Commercials reduced short hedges and added long hedges in corn through the week, for a net 28.3k contract lighter net short of 433k contracts. 

USDA reported corn stocks were 1.377 bbu on September 1st,, well below the average trade estimate. That was up by 142m bushels from last year’s count and compares to the average trade guess of 1.495 bbu. Implied Q4 use to finish the 21/22 season was 2.97 bbu, compared to 2.877 bbu used in Q4 of 20/21.

USDA revised 21/22 production 41 mbu lower to 15.074 bbu. That was exclusively through WCB revisions, specifically with a 12.45 mbu cut in IA. MN was lowered by 7.84 mbu, WI by 7.2 mbu, and SD down by 5.48 mbu. 

Dec 22 Corn  closed at $6.77 1/2, up 8 cents, currently up 6 1/2 cents

Nearby Cash   was $6.62 3/4, down 1 3/4 cents, currently up 6 1/4 cents

Mar 23 Corn  closed at $6.84, up 8 cents,

May 23 Corn  closed at $6.84 1/2, up 7 cents, currently up 6 1/2 cents