Choppy Market Movement
The corn market wrapped up its final session with mixed results, ending the day with a modest drop of one to one and a quarter cents. The weekly performance wasn’t any more forgiving, with May futures witnessing a decline of 7 ¾ cents. Meanwhile, December corn prices closed the trading week on a weaker note, slipping by 3/4 of a cent at Friday’s close.
Market Sentiment
Trade activity for corn futures showcased a downward trend, with prices trending fractionally lower to 1 ¾ cents in the red zone, hovering near the midday session lows. Despite an initial gain of 3 cents earlier in the day, the market could not sustain the momentum.
Financial Maneuvers
Weekly data from the Commodity Futures Trading Commission (CFTC) revealed that managed money funds increased their short corn positions and wrapped up the week ending on 4/2 on a bearish note. The group was reported to be 7.8k contracts more net short at 259.6k contracts. On the other hand, commercials were seen closing short hedges and initiating new long positions, resulting in a net short position of 23,319 contracts as of 4/2.
Export Insights
Monthly Census data underlined the strength of corn export shipments in February, with a recorded volume of 211.4 million bushels. This figure represented a remarkable 25% surge compared to January’s numbers and an impressive 64% leap from February of the previous year (2023).
Closing Figures
Key closing figures for May 24 Corn stood at $4.34 1/4, marking a decrease of 1 cent. The nearby cash rate was reported at $4.15 1/2, declining by 1/2 cent. July 24 Corn closed at $4.46 3/4, down by 3/4 of a cent, while December 24 Corn finished at $4.72 1/2, also dipping by 3/4 of a cent.
Alan Brugler, the author of this article, confirms no direct or indirect holdings in any of the securities discussed. All information presented is for informational purposes only. For further details, refer to the Barchart Disclosure Policy.
The author’s views and opinions are solely their own and may not necessarily align with those of Nasdaq, Inc.
