Corn futures posted midday gains on Monday, with contracts rising 4 to 5½ cents across the nearbys, driven by fresh export sales and market positioning ahead of the upcoming World Agricultural Supply and Demand Estimates (WASDE) report. The CmdtyView national average cash corn price increased 4½ cents to $4.34¼ per bushel, reflecting renewed buying interest in the grain market.
Export Sales Support Corn Prices
The U.S. Department of Agriculture (USDA) reported two private export sales of corn on Monday morning. A total of 380,000 metric tons (MT) was sold to Mexico, split between 220,000 MT for the 2025/26 marketing year and 160,000 MT for 2026/27. Additionally, 128,000 MT of 2025/26 corn was sold to South Korea. These sales underscore sustained international demand for U.S. corn, particularly from key trading partners.
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According to the USDA’s Federal Grain Inspection Service (FGIS), corn export shipments reached 1.691 million metric tons (66.56 million bushels) during the week ending May 7. While this volume was 17.1% below the previous week, it was 30.04% above the same week last year. Mexico was the top destination, receiving 464,931 MT, followed by South Korea (275,981 MT) and Colombia (164,767 MT).
For the 2025/26 marketing year, cumulative exports since September 1 stand at 57.18 MMT (2.251 billion bushels), which is 30.49% below the same period last year. The decline reflects a slower pace of shipments compared to the previous marketing year, though recent weekly volumes have shown improvement.
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Managed Money Increases Net Long Position
The weekly Commodity Futures Trading Commission (CFTC) Commitment of Traders report, released Friday, showed that managed money increased their net long position in corn futures and options by 79,822 contracts, bringing the total to 343,925 contracts as of Tuesday. This suggests that speculative traders are growing more bullish on corn prices, likely due to supportive export data and expectations of tighter supplies.
On the other side, commercials increased their net short position by 108,804 contracts to 663,170 contracts, indicating that hedgers are taking advantage of the price rally to lock in selling prices.
Market Eyes May WASDE Report
The focus now shifts to the May WASDE report, scheduled for release on Tuesday. This report is particularly significant as it will include the first official balance sheet for the 2026/27 marketing year. Traders are estimating old crop (2025/26) corn stocks at 2.13 billion bushels, compared to 2.127 billion bushels in the April report.
For the new crop (2026/27), analysts surveyed by Bloomberg project an average ending stock estimate of 1.942 billion bushels, with a range of 1.776 to 2.11 billion bushels. U.S. production for 2026 is estimated at 15.985 billion bushels, with an average yield of 183 bushels per acre. These numbers will provide critical insight into the supply outlook and could influence price direction in the weeks ahead.
Additionally, a South Korean importer issued a tender for 210,000 MT of corn, with a deadline set for Tuesday, further underscoring global demand.
Price Levels at a Glance
- May 26 Corn: $4.61¾, up 5½ cents
- Nearby Cash: $4.34¼, up 4½ cents
- Jul 26 Corn: $4.75¾, up 4½ cents
- Dec 26 Corn: $4.98, up 4½ cents
- New Crop Cash: $4.51, up 4¼ cents
Conclusion
Monday’s gains in corn futures reflect a market supported by fresh export sales and speculative optimism ahead of the May WASDE report. While export shipments remain below last year’s pace on a cumulative basis, recent weekly volumes have shown improvement. The upcoming USDA report will be a key catalyst, with traders watching for supply and demand adjustments that could set the tone for the summer months.
FAQs
Q1: Why did corn futures rise on Monday?
Corn futures rose due to USDA-reported export sales to Mexico and South Korea, as well as market positioning ahead of the May WASDE report, which is expected to provide updated supply and demand data.
Q2: What is the May WASDE report and why is it important?
The World Agricultural Supply and Demand Estimates (WASDE) report is a monthly USDA publication that provides forecasts for global and U.S. agricultural commodity supply and demand. The May report is especially important because it includes the first official balance sheet for the new marketing year.
Q3: How do export sales affect corn prices?
Export sales indicate demand for U.S. corn from foreign buyers. Higher sales volumes can support prices by reducing available domestic supplies, while lower sales can pressure prices. Monday’s sales to Mexico and South Korea were seen as positive demand signals.
