Chicago Board of Trade Market News
Outlook: The funds last week reduced their net long position in corn by 50 percent. The surprise rally brought a glimmer of profitability to some farmers but the thinking then turned to the likelihood of a major correction. There was somewhat of a correction but many were stumped when big buying resumed on Tuesday. There were rumors of an Asian (China) fund that was defending its long position.
Certainly a weak dollar makes commodities more attractive. It also did not hurt that weekly U.S. corn export sales were once again significant (85.1 million bushels; 2.16 MMT). On the bearish side, U.S. corn planting has been robust, with a national average of 30 percent in the ground but over 40 percent planted in the two largest production states, Iowa and Illinois. And word that the U.S. economy had been slower in the first quarter than previously thought sent equities lower. But, rumor that some outside money is betting on La Niña and the weather is definitely a risky proposition.
Tomorrow (Friday) is first notice day against May futures and there may be some deliveries, but not a lot. Meanwhile, some expect a seasonal downturn in prices early in the month.