US corn futures on the Chicago Board of Trade rallied on Monday, bouncing from last week's sell-off when nervous investors liquidated their long positions, taking profits to cover margins in other financial markets, traders said.
May corn ended 17-1/4 cents higher at $5.24-3/4 per bushel. The back months closed 15 to 18-1/2 cents up. Volume was moderate at 179,373 futures and 51,321 options. Corn futures prices reached a record high on March 11 but then began dropping as big investment and trading funds took profits.
Open interest in corn futures on Thursday, the last trading day before the holiday weekend, fell nearly 11,800 contracts. Spot CBOT corn prices have plunged 12 percent from their peak in mid-March, leaving the market technically oversold and due for a bit of a relief rally.
Export activity for corn was quiet over the weekend and late on Friday. USDA on Monday said 42.250 million bushels of corn were inspected for export last week, within trade estimates for 38.0 million to 43.0 million bushels.
Satisfactory harvest weather continues in Argentina, the second largest corn exporter behind the United States. But concerns were mounting about a slow start to the US corn planting season due to wet, soggy conditions in the Midwest crop belt. This year more than ever the US corn crop needs to reach its maximum yield potential given the strong global demand for grains.
Heavy rains and snow fell across the upper US Midwest crop belt over the long weekend, cutting the chance of an early start to fieldwork and corn seeding, a DTN Meteorlogix forecaster said.
Trade data issued by the Commodity Futures Trading Commission showed that large speculators slashed their net long position in CBOT corn by nearly 43,000 contracts to 182,935 in the week ended March 18. CBOT oat futures ended 2 to 3 cents per bushel lower, breaking the firmer trend in other CBOT markets. May oats ended 3-1/4 cents lower at $3.35-3/4 per bushel. Volume was moderate to large estimated at 1,860 futures and 53 options.