Corn Rallied Back into the Close

After fading through midday, front month corn futures bounced into the close. Old crop futures were up 6 1/2 to 17 3/4 cents, while new crop ended the day 10 1/4 to 29 3/4 cents higher. 

CFTC data with positions as of Tuesday’s settle showed a 30,184 contract lighter spec fund Open Interest. The long liquidation through the week to 3/1slightly outweighed the short covering for a net 5,214 contract decrease to their then 349,222 contract net long. The commercials were adding shorts through the week, extending their net short by 14.8k contracts to a 44-wk high 717,411 contracts.

Going into the March WASDE report, analysts expect to see a 74 mbu trim to U.S. ending stocks – with many citing an export boost given the Black Sea conflict. If realized that would leave the national carryout at 1.466 bbu. Global corn supplies are estimated 2.7 MMT tighter to 299.5 MMT. 

For SoAm production the pre-trade estimates are seeking a 1.4 MMT cut for Brazil and a 2.1 MMT cut for Argentina corn. 

Mar 22 Corn  closed at $7.56 1/2, up 5 1/4 cents,

Nearby Cash  was $7.21 1/4, up 3 1/4 cents,

May 22 Corn  closed at $7.54 1/4, up 6 1/2 cents,

Dec 22 Corn  closed at $6.29 1/2, up 17 1/2 cents,

New Crop Cash  was $6.24 1/8, up 25 3/8 cents,