Key Moments
- Corn futures were lower by 2 to 3 cents in most contracts in Monday morning trade, following notable declines into the weekend.
- Managed money net length fell to 115,082 contracts as of Tuesday, June 2, reflecting a weekly reduction of 90,422 contracts.
- U.S. corn export commitments reached 81.766 MMT, equaling 98% of USDA’s export projection and remaining ahead of the average sales pace.
Futures Slide Continues Into Monday
Corn futures were under pressure in Monday morning trading, with most contracts trading 2 to 3 cents lower. This weakness followed additional declines heading into the weekend, when contracts settled between 2 ¼ and 7 cents lower on the session.
Over the past week, the July contract fell 29 ½ cents, extending its two-week drop to 45 cents. December futures declined 29 cents over the same weekly period. The CmdtyView national average Cash Corn price moved lower as well, dropping 6 3/4 cents to $3.83 1/4.
Positioning and Open Interest Trends
Price pressure late last week was driven in part by ongoing long liquidation. Open interest data on Friday pointed to net new selling, with total open interest up 9,025 contracts. This occurred even as the Goldman Roll was underway, with July open interest down 31,039 contracts and September open interest up 7,685 contracts.
According to CFTC’s Commitment of Traders report, managed money held a net long position of 115,082 contracts as of Tuesday, June 2, described as “20 cents ago.” That net long stance represented a weekly reduction of 90,422 contracts. The majority of that shift came from long positions exiting the market, down 63,160 contracts, while new short positions increased by 27,262 contracts.
Export Performance and USDA Benchmarks
Weekly Export Sales figures showed U.S. corn export commitments at 81.766 MMT, 26% above the same week a year earlier. Commitments stood at 98% of the USDA export projection, slightly ahead of the average pace of 97% for this point in the marketing year.
Actual shipments reached 62.58 MMT, equal to 75% of USDA’s export estimate and in line with the average pace.
Brazil Second Crop Update
Brazil’s second crop corn harvest was estimated at 4.4% complete, according to AgRural. The group pegged second crop production at 108.2 MMT, a decrease of 0.9 MMT from its prior estimate.
Price Snapshot
| Contract / Market | Most Recent Close | Change at Close | Current Move |
|---|---|---|---|
| Jul 26 Corn | $4.17 1/2 | down 7 cents | currently down 2 ½ cents |
| Nearby Cash | $3.83 1/4 | down 6 3/4 cents | – |
| Sep 26 Corn | $4.27 | down 5 3/4 cents | currently down 2 ½ cents |
| Dec 26 Corn | $4.46 | down 5 3/4 cents | currently down 2 cents |
| New Crop Cash | $4.00 | down 5 1/4 cents | – |
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.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
