Corn Futures Stuck in Sideways Trend Amid Hot and Dry Conditions

Corn futures have been stuck in a sideways trend for now, as of the latest data from the CFTC. This trend is reflected in the positions held by both noncommercial and commercial traders. Noncommercial corn traders were net-long futures holders, with a total position of 255,068 contracts as of August 4th. They also demonstrated a net-buying behavior during the reporting period, adding to their bullish outlook for late summer.

The hot and dry conditions that swept across the US Corn Belt in July likely contributed to this sentiment. Noncommercial traders are holding onto their optimistic view despite these challenging weather patterns. In contrast, commercial corn traders held a net-short position of 208,345 contracts as of August 4th and continued to sell during the reporting period.

The price difference between the September 2026 contract and the December 2026 contract remains steady at 23 cents lower for the former compared to the latter. This disparity may be a factor in the trading behavior of commercial traders, who are currently net-sellers.