Corn Heads Into the Weekend on a High Note

Corn futures posted gains of 4 ¼ to 13 ¼ cents on the Friday session. Futures closed out the day near the highs, following the release of some bull friendly USDA data.

In the Friday afternoon Commitment of Traders report, CFTC data showed spec funds in corn futures and options slashing 115,527 contracts from their net short position as of May 7th. That took their once large net short position to just 102,513 contracts as of Tuesday, more than 238,000 contracts from their peak back in February. Commercials increased their net short position to 162,635 contracts, with shorts up 106,824 contracts, implying a sharp increase in producer selling.

This morning’s USDA WASDE report showed the old crop US stocks dropping 100 mbu to 2.022 bbu on increase to exports and ethanol use. The new crop balance sheet saw an expected building of the carryout, with the 24/25 ending stocks at 2.102 bbu, though it was 180 mbu below estimates. As expected, production was taken via the March Intentions report for acreage (90 million acres), with trendline yield estimated at 181 bpa. That took the total projected production to 14.86 bbu vs. the 14.869 bbu estimate.

On the world side, USDA cut 2 MMT from the Brazilian production total at 122 MMT. Argentine production was estimated at 53 MMT, a 2 MMT reduction from the previous month. World stocks were tallied at 313.08 MMT for old crop, a drop of 5.2 MMT. For new crop the balance sheet sees carryout backing off slightly to 312.27 MMT.

China’s CASDE took their 24/25 import projection to 13 MMT, which is a drop of 6.5 MMT from the 23/24 projection. Much of that is offset due to increased production, as the country has recently approved several GMO varieties. USDA pegged the country’s import total at 23 MMT in Friday’s WASDE report.

May 24 Corn closed at $4.55 3/4, up 13 cents,

Nearby Cash was $4.46 3/8, up 12 7/8 cents,

Jul 24 Corn closed at $4.69 3/4, up 13 1/4 cents,

Dec 24 Corn closed at $4.92, up 12 cents,

New Crop Cash was $4.56 1/8, up 12 7/8 cents,

On the date of publication, Alan Brugler 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.