Corn Futures Fall Further as Energy Weakness Weighs

Key Moments

Futures Under Pressure as Crude Oil Slides

Corn prices were weaker on Wednesday morning, trading 3 to 4 1/2 cents lower as the session progressed. Persistent softness in the crude oil market added pressure, with crude down another $5 per barrel during the morning.

On Tuesday, corn futures settled in negative territory across the curve, with losses ranging from 1 1/4 to 5 3/4 cents at the close. Total open interest declined by 11,348 contracts, reflecting a drop of 22,687 contracts in July positions and an increase of 7,577 contracts in September positions.

The CmdtyView national average cash corn price moved lower as well, falling 5 3/4 cents to $4.18 3/4.

Export Inspections Show Solid Weekly Gains

Export Inspections data indicated that 1.582 MMT (62.27 mbu) of corn was shipped during the week that ended on May 21. That volume was 11.43% higher than the previous week and 13.01% above the same week a year earlier.

Mexico was the largest individual destination with 406,078 MT, followed by shipments of 274,937 MT to Japan and 260,620 MT to South Korea. Cumulative marketing year exports reached 60.18 MMT (2.369 bbu), running 28.03% ahead of the same point last year.

U.S. Crop Progress Running Ahead of Normal Pace

According to NASS Crop Progress data, U.S. corn planting reached 86% complete as of Sunday, outpacing the 5-year average of 83% by 3 percentage points. Emergence was reported at 60%, which is 2 percentage points faster than the typical pace.

Condition ratings for the U.S. corn crop are scheduled to begin next week.

International Demand and Overnight Purchases

In the international market, a pair of South Korean importers secured a combined 130,000 MT of corn in overnight private transactions, adding to recent demand indications from the region.

Corn Market Snapshot

Disclosure

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.