Corn Pulls off Limit Losses, Still Feels Pressure Yield Hike
Corn futures were caught off-guard by a surprise hike to corn yield on Friday, as contracts closed with losses of 19 to 21 cents in the front months. December pulled nearly a dime off the limit losses, but still saw a weekly loss of 18 cents. Deferred contracts were down 3 to 8 cents on Friday. The CmdtyView national average Cash Corn price was down 22 3/4 cents at $4.39.
Crop Production data from this morning showed US corn yield at 181.2 bpa, up 2.7 bpa from the September report. That took the production total 234 mbu higher to 16.034 bbu and was well above trade estimates.
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With the increased production, supplies were 407 mbu larger due to the 173 mbu increase to the 2025/26 carryout found back at the end of September. That took the US ending stocks projection for 2026/27 to 1.849 bbu, 282 mbu above September’s guess and 179 mbu larger than estimates. An increase in all three major use categories by a combined 125 mbu eased some of the increase in supply. World corn carryout was raised by 8,34 MMT to 280.44 MMT, mainly due to the US.
CFTC data showed managed money already cutting back their net long position ahead of the USDA reported, dropping 60,491 contracts in the week ending last Tuesday. That took their net long to 317,359 contracts by October 6, mainly via long liquidation.
Dec 26 Corn closed at $4.79 3/4, down 20 1/2 cents,
Nearby Cash was $4.39, down 22 3/4 cents,
Mar 27 Corn closed at $4.94 1/4, down 21 cents,
May 27 Corn closed at $5.02, down 20 1/4 cents,
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.
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