Corn Prices Drop on Monday as Weather Forecasts Improve

Corn futures fell early on Monday morning due to an improving weather forecast and declining crude oil prices. The September contract dropped by as much as $0.12 to $4.64 1/4, while nearby cash corn was at $4.34 1/2. The decline in corn prices is a result of the NOAA 7-day QPF showing 1 to 2 inches of rain across the Corn Belt over the next week. This increase in rainfall could lead to an improved crop yield, putting downward pressure on prices.

The Brazilian second corn crop was listed at 60% harvested in the center south region, according to AgRural. Managed money added to their net long in corn futures and options in the week of July 21, adding 49,518 contracts. Total corn commitments are now at 86.613 MMT, which is 103% of the USDA export projection.

Export sales data showed that new crop corn sales are accumulating at a faster rate than last year, with sales for new crop now at 7.56 MMT, 12.5% ahead of the same period last year. The CmdtyView national average Cash Corn price was up 1/4 cent at $4.34.