Nearby Corn Closed Out the Year Nearly UnchangedPosted 01/02/2018 11:28AM CT |
March corn settled Friday at 2506, down 1.25 cents on the week. The continuous nearby corn contract closed out the year down just 1.25 cents. Dalian corn futures ended the year up nearly 20% on continued support from feed mills and processors in the northeast as a shortage of good quality corn continues to support prices. The government may choose to release stocks from reserves earlier than previously planned but many believe there will be subdued interest due to the quality of the corn. Physical prices at major ports in the north rose by 30 yuan per tonne so far this week on robust purchases from feed mills.
The managed money trader category reduced their net short position by 15,529 contracts to 206,624 contracts as of December 26. The COT futures and options report as of December 26 for corn showed non-commercial traders were net short 130,725 contracts, a decrease of 19,082 contracts. The commercial traders were net long 101,931 contracts, a decrease of 17,776 contracts.
The nearby continuous contract in corn starts 2018 down just 1.25 cents from where it started 2017. With the trend following managed money traders short 206,624 contracts and the 50-day moving average closing in at 355, a trade above could spark some new buying.
Corn Mar ’18 Daily Chart