Friday’s session ended with 9 to 12 1/4 cent losses across the front month corn contracts. December was a nickel off the session low for the close, but ended the week as a net 6 cent loss. So far through Friday the corn futures market is sitting 3 1/4 to 8 cents in the red. December futures were down by an additional 12 3/4 cents earlier in the trade. At $5.37, the contract was back to break even for the week’s move.
Weekly CFTC data showed managed money funds flipped back to net long on a 73k contract swing. The funds closed 48.7k shorts and added 24.8k longs during the week that ended 7/25. That left them 26.6k contracts net long. Commercial hedgers expanded their net short by 48k contracts to 221.7k after net new selling and long liquidation.
USDA’s weekly Ethanol Report showed the cash market was mostly a nickel weaker through the week from $2.30 to $2.50/gal regionally. DDGS were quoted from $190 to $220/ton during the week and were mixed from -$15 to +$30 regionally. The Cash corn oil market was mostly 4 to 10 cents stronger for the week mostly near 68-70 cents/lb.
NOAA’s 7-day QPF has some precip returning over the next week. Northern ECB states and NE/SD can all expect at least an inch. Eastern MO and IA will be shorted, but will still receive 1/2”. Notably, Minnesota and the Southern half of ECB states are currently expected to miss out.
USDA reported 59% of the corn crop is experiencing drought conditions via the Drought Monitor; a 4ppt increase from last week.
South Korea’s NOFI issued an international tender for 138k MT of optional origin feed corn.
BAGE estimates corn production at 34 MMT, as Argentina harvest reached 68% complete. The EU Commission reduced their corn production estimate by 700k MT to 63 MMT.
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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