The week of corn trade saw strength out of the weekend on Russia pulling out of the grain export corridor, but quickly reversed midweek when Russia re-entered. On net, Friday’s 1 3/4 to 3 1/4 cent gains left the board fractionally in the black for the week.
CFTC data showed that as of the 11/1 settle, managed money firms had added 6,189 new longs and lifted 1.4k shorts. That left the group 7.6k contracts more net long to 271,960. Commercials added 34k new hedges through the week, including 9.8k longs and 24k shorts. On net the commercial position was 14.2k contracts more short to 490,638 contracts.
Ahead of the monthly WASDE report, analysts surveyed are looking for a 0.1 bpa yield hit to 171.8 bpa. That would take production down to 13.888 bbu if the trade average guess is realized. Ending stocks, however, are projected to loosen by 46.5 mbu relative to October. Despite the light output reduction, the looser stocks imply greater demand loss.
Dec 22 Corn closed at $6.81, up 1 3/4 cents,
Nearby Cash was $6.78 1/1, up 2 3/8 cents,
Mar 23 Corn closed at $6.86 3/4, up 2 cents,
May 23 Corn closed at $6.86 3/4, up 2 cents,
On the date of publication, Alan Brugler 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.
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