Corn Heading Lower Out of the Weekend

Corn futures are trading 13 ¾ to 15 ¾ cents lower coming out of the weekend. A cooler and somewhat wetter WCB weather forecast caused bulls to back off a bit on Sunday night. They were skeptical coming out of the USDA reports but rallied into the close to post 10 ½ to 14 ½ cent gains in the front months on Friday. Preliminary open interest shows net buying in most months, with short covering in September.

The NASS Crop Production report showed the initial corn yield at 175.4 bpa. That was down 1.6 bpa compared to the WASDE balance sheet in July and 0.5 below the average trade estimate. It took production to 14.359 bbu, a 146 mbu drop. USDA also raised their old crop carryout in the monthly report by 20 mbu to 1.53 bbu. That increase came via a cut to the FSI use. The larger stocks mixed with the production reduction and a larger export forecast took new crop stocks to 1.388 bbu, a 82 mbu drop from the prior report. 

The WAOB also took the world ending stocks number down to 306.68 MMT, a 6.22 MMT reduction. That was led by US and EU production cuts, with the latter down 8 MMT to 60 MMT. Ukrainian production was raised 5 MMT to 30 with exports up 3.5 MMT.  

The CFTC Commitment of Traders report showed spec funds increasing their net long in corn futures and options by 12,141 contracts in the week ending 8/9. They took that net long position to 142,062 contracts as of Tuesday.

Sep 22 Corn  closed at $6.39 3/4, up 10 1/2 cents, they are down 15 ½ cents this morning

Nearby Cash   was $6.97 3/8 on Friday, up 6 5/8 cents,

Dec 22 Corn  closed at $6.42 1/4, up 14 1/2 cents, they are 15 ¾ cents this morning

Mar 23 Corn  closed at $6.49, up 14 1/2 cents, they are 15 ½ cents this morning

New Crop Cash   was $6.08 ½ on Friday, up 14 3/4 cents,