Midweek Corn Sell-Off Driven by Spillover Weakness

Corn futures are facing pressure at midday, affected by spillover weakness from last week. Contracts have dropped 6 to 7 cents in the front months, but have pulled back from early session highs. The CmdtyView national average Cash Corn price is down 6 cents at $4.78. China recently removed tariffs on several US goods, including corn, following a meeting between the two countries.

USDA's weekly Export Inspections report showed corn export shipments at 1.566 MMT (61.65 mbu) during the week ending September 24, down 20.11% from the previous week but 1.73% above the same period last year. Mexico was the top destination for corn exports, followed by South Korea and Japan.

Heavy rains are expected in the forecast for the next week, with up to 4 inches predicted for Texas to the Great Lakes and Nebraska to Indiana. Commitment of Traders data from CFTC showed managed money trimming back their net long position in corn futures and options by 12,405 contracts.