Corn Market Soars as Speculators Boost Positions
The corn market experienced a significant rally on Friday, with nearby contracts increasing by 8 ¼ to 10 cents and other contracts climbing 1 ¼ to 3 ¾ cents. Over the week, March contracts rose by 13 ¾ cents. The national average cash corn price reported by cmdtyView stands at $4.49, reflecting a 9 1/4 cent increase. In observance of Martin Luther King Jr. Day, markets and government operations will be closed on Monday, returning to a regular schedule on Tuesday.
Traders Adjust Positions Ahead of Market Changes
The weekly Commitment of Traders report from the CFTC highlighted a notable shift, with managed money speculators adding 38,882 contracts to their net long position in corn futures and options as of January 14. This change brought their total to 292,228 contracts, marking the highest level since May 2022. Conversely, commercial traders increased their net short position by 52,432 contracts, now totaling 540,764 contracts—the largest amount since June 2022.
Export Sales Show Strong Demand for U.S. Corn
A report from USDA’s Export Sales on Thursday revealed that 1.024 MMT of 2024/25 corn was sold during the week ending January 9. This brought total commitments for the year to 40.27 MMT, representing 65% of USDA’s full-year forecast, compared to the typical sales pace of 61%.
Argentina Faces Declining Corn Conditions
Meanwhile, conditions for corn crops in Argentina are worsening, with excellent crop conditions dropping by 3% to 39%, according to the Buenos Aires Grains Exchange. In the same report, poor conditions have risen by 5% to 14%.
Current Corn Prices
Mar 25 Corn closed at $4.84 1/4, up 9 3/4 cents.
Nearby Cash was $4.49, up 9 1/4 cents.
May 25 Corn closed at $4.93, up 10 cents.
Dec 25 Corn closed at $4.56, up 3 1/4 cents.
New Crop Cash was $4.27, up 3 1/2 cents.
On the date of publication, Austin Schroeder 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
