Corn markets are trading 1 to 1 3/4 cents weaker to begin the new week. Overnight trade had the market mostly lower, with a -4 3/4 to -1 cent range. Friday’s 1 3/4 to 3 1/4 cent gains left the board fractionally in the black for the week. The market got a little lift from a weaker dollar. USDA showed the average cash prices for ethanol from $2.40 to $2.62 regionally, mostly up 9 to 40 cents/gal. DDGS were mostly weaker from $5 to $15/ton from $205 to $255 regionally, save for MO and KS with some +$300/ton sales. Corn oil cash prices were within a 5 cents of last week, from 71 to 81 cents/lb.
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 on Wednesday, 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. Corn export sales commitments are 16.5 MMT below last year at this time.
Dec 22 Corn closed at $6.81, up 1 3/4 cents, currently down 2 1/2 cents
Nearby Cash was $6.78 on Friday, up 2 3/8 cents,
Mar 23 Corn closed at $6.86 3/4, up 2 cents, currently down 2 1/4 cents
May 23 Corn closed at $6.86 3/4, up 2 cents, currently down 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.
