Corn Market Gaps Lower

After the double digit losses on Friday erased the week’s gains, corn prices start the new week another 6 to 8 cents per bushel lower. While night time temps remain very high, threatening yield, the weather forecasts got a lot wetter since Friday for IL and IN and SW OH. Corn futures closed 10 to 12 1/4 cents in the red on Friday. Net new selling was noted in the December contract, with preliminary OI rising 8,069 across all months. USDA cut ethanol corn use 50 mbu to 4.85 bbu, feed and residual was down 100 mbu to 5.6 bbu. Old crop carryout was ultimately bumped by 155 mbu to 2.248 bbu. The additional carryover to 2020/21 was offset by a larger than anticipated cut in production. USDA’s corn production forecast is 15 billion bushels, down 995 mbu from June. The cut to U.S. production lowered World production to 1.163 billion MT. US new crop ending stocks dropped by a larger amount than anticipated to 2.648 bbu. The expected cash price for new crop corn was up 15 cents from the previous estimate to $3.35/bu. The CFTC’s weekly CoT report showed funds covered 67,922 shorts in the week ending July 7 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%.

--- provided by Brugler Marketing & Management

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