Corn prices are sitting with a nickel gain coming out of the weekend. The overnight range was mostly upward within 7 1/4 cents. Corn futures ended the day 11 1/4 to 12 1/4 cents weaker on Friday. December completed the week with a net 1/4 cent loss.Â
There were 53 delivery notices against July corn over the weekend, with all 53 stopped by commercials for their house accounts, typically stronger hands. Preliminary open interest sank 12,174 contracts on Friday due to long liquidation ahead of the weekend.Â
Traders are looking for an out-of-character yield cut in the WASDE report on Wednesday. None of the 23 Bloomberg survey respondents believed USDA would maintain the 181.5 bpa corn yield. USDA has deviated from May/June estimate in the past, but only when substantial evidence exists to do so. The average of pre-report estimates is to see a 5.2 bpa reduction to 176.3 bpa.Â
CFTC’s weekly CoT report had managed money closing 25k longs and adding 46k new shorts during the week that ended 7/3. That flipped their net position back to 18,209 contracts net short. Commercials took the opposite approach with fewer short hedges in place and 33k new long hedges for a net 209,491 contract net short.Â
USDA reported old crop weekly export sales were 251.7k MT. Traders expected between 0 and 500k MT of old crop business going in. New crop export sales were 418k MT for the week, which left forward sales at 3.6 MMT. That is still well behind year ago.Â
Sep 23 Corn  closed at $4.87 1/4, down 11 3/4 cents, currently up 5 1/4 cents
Nearby Cash  was $5.28, down 11 cents,
Dec 23 Corn  closed at $4.94 1/2, down 12 cents, currently up 5 cents
Mar 24 Corn  closed at $5.06, down 12 1/4 cents, currently up 5 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. For more information please view the Barchart Disclosure Policy here.
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