Corn Market Red Out of Memorial Day

Corn futures are trading near their overnight lows after a fairly tight range coming back from the 3-day Weekend. Current quotes are mostly 3 cents lower, though July is only 1/4 of a cent in the red so far. Corn futures posted 2.2% to 3.6% gains across the front months on Friday. The July contract got back above $6, and is within 30 cents of where May expired. July closed at a 49 1/2 cent gain for the week, and is sitting at a 19 cent gain for the month. Preliminary open interest showed short covering on Friday, dropping 1,866 contracts.  

CFTC’s weekly CoT report had managed money spec traders as net new sellers in the week that ended 5/23. They extended their net short by 6k contracts to 98,027. Commercial corn hedgers added 6k new longs and closed 9.6k shorts through the week.

USDA’s weekly Ethanol report showed cash ethanol prices ranged $2.28 to $2.43/gal regionally this week with prices mostly UNCH to 9 cents weaker. DDGS prices were also weaker, down from $5 to $35/ton through the week to ~$220/ton. Regional corn oil quotes were centered around 55 cents/lb and were mostly 1 to 2 cents weaker. 

The 168 hour QPF rainfall accumulation forecast has some heavy amounts on the western edge of the Plains, but eastern Nebraska sees only localized showers and OH is high and dry. Omaha and parts of southeast Nebraska are on track for record low May rainfall totals, with 2 days remaining.  The mid-June forecasts aren’t as reliable but lean toward cooler temps and closer to normal rainfall in the CB. 

Jul 23 Corn  closed at $6.04, up 13 1/4 cents, currently down 1/4 cent

Nearby Cash   was $6.37 5/8, up 13 cents,

Sep 23 Corn  closed at $5.29, up 18 1/2 cents, currently down 3 cents

Dec 23 Corn  closed at $5.34 1/2, up 18 1/2 cents, currently down 3 cents