May corn was trading 6 3/4 cents lower late in the overnight session. China futures were down 0.8% overnight. Outside market forces look mostly negative with a firm US dollar and weakness in metal and energy markets. The strength in equity markets is a partial offset. Traders see planted area this afternoon reaching near 20-25% from 7% last week. While the plantings pace this week could slow due to hefty rain totals, the 6-10 day outlook in the Midwest mostly calls for below normal precipitation and above normal temperatures so there could be a record or near record plantings pace by the end of the month. Rumors that China bought corn last week were not confirmed on the daily wires. Traders see higher Brazil corn production this season, up about 3 million tonnes from the recent USDA estimate due to large second crop) plus the outlook for a surge in Ukraine corn production (due to winter wheat losses in the fall) as reasons to suspect sluggish corn export demand to other locations besides China. May corn closed 8 1/4 cents lower on the session Friday and down 29 cents for the week. The market saw a steady flow of fund trader selling after the lower opening to drive the market sharply lower on the session into the mid-day. May corn pushed to the lowest level since March 30th and is now down as much as 43 1/4 cents from last Monday's highs. Weak economic news from China and debt concerns in Spain helped to spark weak action for outside market forces. In addition, traders see the wet weather for the Midwest over the weekend and early this week as a negative factor. While this may slow plantings, traders see the improving soil moisture as a more prominent factor. In addition, a sharp sell-off in wheat added to the negative tone. News of higher planted area planned for China was also seen as a negative force. The Commitments of Traders reports as of April 10th showed Non-Commercial traders were net long 227,196 contracts, down 8,543 contracts for the week and the long liquidation selling trend of fund traders is seen as a short-term negative force. Commodity Index traders held a net long position of 398,266 contracts, down 4,883.
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