Corn futures in Chicago ended Friday on a positive note. The May contract gained 4.75 US cents to close at 467.25 US cents/bushel. The July futures also rose, gaining 4.25 US cents to 478.25 US cents/bushel. September futures also followed the upward trend and recorded a moderate gain.
Market participants are pointing above all to a massive expansion of positions by speculative funds. According to the latest report from the US futures market regulator CFTC, funds increased their net long position by 140,297 contracts in the week ending March 10. This brought the total net long position to 193,271 contracts. This is the strongest bullish weekly movement since May 2019. On the opposite side, commercial market participants took advantage of the rising prices to sell and significantly increased their net short position.
The export side also remains fundamentally supportive. US corn exports have reached commitments of 66.51 million tons in the current season, which is around 32% higher than the previous year. At the same time, this already corresponds to 79% of the current USDA export forecast and is therefore close to the usual seasonal pace. Actual shipments are also running faster than average at 41.74 million tons.
Internationally, Brazil is providing a slight boost. The state agricultural authority CONAB lowered its forecast for the entire maize harvest slightly to 138.27 million tons. While the first harvest is estimated to be higher, expectations for the important second harvest are slightly lower. The decisive factor for traders remains whether this cut will be extended further in the coming months. On Euronext, maize gained €1.75 to €212.00 per tonne.
