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Corn closes 27¢ lower | Monday, May 10, 2021

China bought and cancelled U.S. corn orders.

On Monday, the CME Group’s farm markets dip, with investors set to digest a lot of new data this week.

A 1-inch-plus rain in the Midwest and Plains states over the weekend is also helping the bears take control today. Plus, the USDA will release its Crop Progress and Supply/Demand Reports this week.

At the close, the July corn futures finished 20½¢ lower at $7.11½. New-crop September futures finished 25¾¢ lower at $6.29½. December corn futures closed 27¼¢ lower at $6.09. 
 
July soybean futures settled 2¢ lower at $15.87¾. August soybean futures ended 8¾¢ lower at $15.28½. New-crop November soybean futures closed 19½¢ lower at $14.14¼.

July wheat futures finished 31¾¢ lower at $7.30¾. 

July soymeal futures closed $0.50 per short ton higher at $442.30.

July soy oil futures settled 0.64¢ lower at 63.84¢ per pound.

In the outside markets, the NYMEX crude oil market is -0.11 lower (-0.17%) at $64.79. The U.S. dollar is higher, and the Dow Jones Industrials are 103 points higher (+0.30%) at 34,881 points, a record-high.

On Monday, private exporters reported to the USDA the following activity:

  • Export sales of 1,020,000 metric tons (40 million bushels) of corn for delivery to China during the 2021/2022 marketing year.
  • Cancellations of export sales of 280,000 metric tons (11.0 million bushels) of corn for delivery to China during the 2020/2021 marketing year. 

The marketing year for corn began Sept. 1.

Al Kluis, Kluis Advisors, says that investors have a lot of data to digest this week. 

“This week and next week, the key to watch in the USDA Crop Progress report is the rate of corn emergence. U.S. farmers are making near-record progress in getting the corn crop planted this year. However, it is not the planting date that counts, but when the corn plant emerges,” Kluis stated in a note to customers.  

Kluis added, “I am watching the new-crop soybean-to-corn ratio. It appears the corn market is winning the acreage battle. I expect more acres of corn and soybeans in the USDA Acres report at the end of June. The amount of planted corn acres could come in 2 to 3 million acres over the March intentions report, with soybean 1 million acres over the March report.”

Money managers reduced their net-long positions, or bets on higher prices, in corn to the lowest level in almost two months while also lowering their bullish bets on beans, according to the Commodity Futures Trading Commission.

Investors held a net long 355,499 corn futures contracts as of May 4, down from 362,238 contracts a week earlier, the CFTC said in a report. That’s the smallest such position since March 9.

Hedge funds and other large speculators held a net-long position of 162,975 soybean futures contracts last week, down from 168,851 contracts a week earlier, the government said.

That’s down from 168,851 contracts seven days earlier.

Speculators likely reduced their net long in corn and soybeans after prices reached the highest levels in more than eight years, leading some to sell contracts and liquidate their positions.

In wheat, meanwhile, investors held a net-34,177 hard-red wheat futures contracts as of May 4, up from 30,111 contracts the previous week, the CFTC said.

That’s the largest bullish position for the grain since March 16.

Investors held a net-long position of 3,981 soft-red wheat contracts last week, down from 7,210 a week earlier, the agency said in its report.

The weekly Commitments of Traders report from the Commodity Futures Trading Commission shows trader positions in futures markets.

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