Double Digit Losses for Corn

Corn traders sold the fact and took profits ahead of the weekend. Futures closed the Friday session 10 to 12 1/4 cents deep in the red. From the mandatory reporting system, USDA announced a huge 1.365 MMT corn sale to China, split 56/44% old/new crop. USDA’s corn production forecast is 15 billion bushels, down 995 mbu from June due to acreage cuts. The trade was looking for a 954 mbu cut. Global corn production was down 25.27 MMT, reflecting the cut in U.S. production, to 1,163 MMT. Domestic old crop carryout increased 145 mbu to 2.248, which was a smaller than anticipated increase. The 2020/21 corn stocks were dropped by a larger amount than anticipated, with USDA showing 2.648 bbu. The expected cash price for new crop corn was up 15 cents to $3.35/bu. The CFTC’s weekly CoT report showed funds covered 67,922 shorts on the week for a net short position of 141,741 contracts. Over the last 2 weeks managed money covered 119,564 shorts, and spec trader OI was down 18%.

Jul 20 Corn closed at $3.40 1/2, down 10 3/4 cents,

Sep 20 Corn closed at $3.37 1/4, down 11 1/2 cents,

Dec 20 Corn closed at $3.44 3/4, down 12 1/4 cents,

Mar 21 Corn closed at $3.55, down 11 3/4 cents,

--- provided by Brugler Marketing & Management

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