Corn Futures Decline as Weather Boosts Planting Progress

Corn futures experience losses amid favorable weather aiding planting. With export shipments showing strength, volatility remains. Traders must monitor market conditions as the Crop Progress report approaches.

Date: 06-05-2025

AI Rating: 6

Market Overview: Corn futures are witnessing a decline, trading 6 to 14 cents lower. This drop is influenced by favorable weather conditions facilitating planting across the Corn Belt. Additionally, weather conditions in Brazil are contributing to bearish trends in corn prices.

**Export Inspections Insight:** The USDA's latest report highlights that a total of 1.61 MMT of corn was shipped in the week ending May 1. Despite a slight week-over-week decrease of 3.48%, this figure marks a significant increase of 23.81% relative to the same week in the previous year. Notably, Mexico remains the leading importer, receiving 557,095 MT, indicating sustained demand for U.S. corn.

**Crop Progress Data Anticipation:** The upcoming release of Crop Progress data is expected to show that about 40% of the corn planting is complete. This timely planting can positively influence future yield expectations, albeit current prices indicate pressure.

**Trader Positions:** The Commitment of Traders (COT) data indicates a reduction in net long positions among speculators, with the net long decreasing to 71,329 contracts. Conversely, commercials reduced their net short positions, which suggests a cautious market sentiment moving forward.

Based on growing season weather, export demand, and planting rates, market participants should remain alert. Although export numbers are promising, the decline in futures prices and adjustments in trader positions suggest a cautious approach is necessary.

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