Corn Continuing Weaker After Net New Selling

Corn prices are backing off another ¾ of a cent to 1 ½ cents into the last trade day of the week. CME OI data confirmed yesterday’s losses were net new selling with 7k new contracts added across all delivery months. Dec corn lost 16.9k contracts of OI yesterday. There were also 13k calls added on report day. Corn prices ended Thursday with 5 ¼ to 8 cent losses, 1 to 1 ½ cents off the session lows. Prices initially fell out of the report given the larger than expected corn yield from NASS. USDA lowered their cash average price for corn by 10 cents to $4.85 for the year. 

The weekly Export Sales data showed 1.015 MMT of corn was sold during the week that ended 11/2. Mexico was the top buyer with 384k MT booked, followed by unknown destinations with 230k MT. Shipments were a MY high 825k MT, bringing the total to 5.814 MMT through 11/2. That is 32% ahead of last season’s pace. Commitments are 31% ahead of last year’s pace. 

NASS data raised the corn yield for IL (+3), IN (+3) and IA (+1), for a 1.9 bpa yield increase nationally to 174.9. The trade was looking for a 0.3 bpa increase. That raised production by 170 mbu to 15.234 billion. The additional corn increased feed and residual (+50), ethanol (+25), and exports (+50). Carryout was on net 45 mbu higher than last month at 2.156 billion.

Global WASDE numbers saw a 6.3 MMT production increase, mostly U.S., to 1.221b MT. Exports were upped by 3.4 MMT, and Carryout was 2.6 MMT looser at 315 MMT.  

Dec 23 Corn  closed at $4.68, down 8 cents, currently down 1 cent

Nearby Cash   was $4.42 3/4, down 7 7/8 cents,

Mar 24 Corn  closed at $4.82 3/4, down 7 1/4 cents, currently down 3/4 cent

May 24 Corn  closed at $4.91 1/2, down 7 3/4 cents, currently down 1 cent