15c Losses In AM Corn Market
Corn futures gapped lower on Sunday night, and are trading near their lows with 15 cent losses. Friday’s session ended with 9 to 12 1/4 cent losses across the front month corn contracts. December was a nickel off the session low for the close, but ended the week with a net 6 cent loss.
Preliminary open interest data shows long liquidation on Friday, down 1,732 contracts on the day.
Weekly CFTC data showed managed money funds flipped back to net long in a huge 73,000 contract swing. The funds closed 48.7k shorts and added 24.8k longs during the week that ended 7/25. That left them 26.6k contracts net long just in time for the Wednesday-Friday decline. Commercial hedgers expanded their net short by 48k contracts to 221.7k after net new selling and long liquidation.
Argentina has a special peso Exchange rate in effect for export sales, in order to capture export taxes on that corn. About 1.2 MMT has been sold under the program to date, with a target of 4-5 MMT by the end of August.
Sep 23 Corn closed at $5.21, down 12 1/4 cents, currently down 15 1/2 cents
Nearby Cash was $5.62, down 12 3/4 cents,
Dec 23 Corn closed at $5.30 1/4, down 12 cents, currently down 15 1/4 cents
Mar 24 Corn closed at $5.41 3/4, down 12 cents, currently down 15 cents
On the date of publication, Alan Brugler 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.
Source Link: https://www.barchart.com/story/news/18932622/15c-losses-in-am-corn-market
