Corn Market Sees Gains as New Week Begins with Positive Momentum

The corn market is kicking off the week on a robust note, with contracts rising between 1 and 4 cents. Following gains of 3 to 6 cents across most contracts on Friday, the market showed resilience. Despite a tumultuous week, May futures finished with a minor ¼ cent loss, while the new crop December contract experienced a ¾ cent decline. Preliminary open interest data from Friday indicated a rotation of ownership, increasing by 698 contracts. Notably, there were no deliveries issued against March corn overnight. CmdtyView’s national average cash corn price saw an uptick of 5 ½ cents, now standing at $4.29.

CFTC Commitment of Traders data revealed significant activity among spec funds, who reduced their net long position by 117,702 contracts during the week ending March 4. This marks the second largest Tuesday/Tuesday decline on record, bringing their net long total down to 218,752 contracts.

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Export sales data demonstrates strong performance, with total corn export commitments now at 49.567 million metric tons (MMT), reflecting a 26% increase from the previous year. This figure represents 80% of the USDA’s current export forecast, surpassing the 77% average pace typically seen at this time of year.

With the USDA report forthcoming on Tuesday, analysts forecast a reduction of 24 million bushels (mbu) to the U.S. corn carryout projection, adjusting it to 1.516 billion bushels (bbu).

For specific contracts, Mar 25 Corn closed at $4.55 ¼, gaining 5 ¾ cents, and is currently unchanged. Nearby cash was noted at $4.29, up 5 ½ cents.

May 25 Corn ended at $4.69 ¼, up 5 ¼ cents, and is currently up 3 ¾ cents. Meanwhile, Dec 25 Corn closed at $4.54 ¼, an increase of 3 ¼ cents, and is currently up 1 ½ cents.

New crop cash reached $4.19 7/8, marking a rise of 4 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 are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

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