Grain Markets News: Corn Retreats Amid Strong Export Demand

Early week weakness has gripped corn futures as grain markets navigate shifting buyer interest. Trading activity on Monday morning showed contracts down 1 to 2½ cents, pulling back from the previous week’s stellar performance. The latest grain markets news reflects a typical consolidation pattern after significant gains, with last week delivering 5 to 6½ cent advances across most corn contract months and pushing the weekly rally to nearly 5¾ cents higher.

Weekly Price Retreat Follows Strong Rally

The grain markets have absorbed substantial new buying interest, evidenced by a jump of 18,732 contracts in preliminary open interest on Friday. CmdtyView’s national cash corn average climbed 6¾ cents to settle at $3.93½, indicating underlying support for the commodity. While early week trading shows short-term profit-taking, the broader grain markets remain underpinned by strong fundamental demand signals that emerged late last week.

Export Bookings Hit Record Levels in Grain Markets

International buyers have stepped up purchasing activity, according to the latest USDA Export Sales data, capitalizing on competitive pricing opportunities from the previous week’s modest pullback. Corn bookings reached exceptional levels—4.01 million metric tons in the week of January 15—marking the largest weekly sales volume since March 2021. After adjusting for Chinese purchases and bunched sales related to past government shutdowns, this week represents the strongest grain markets activity since records began in 1991, more than doubling year-ago volumes.

The composition of buyers reflects the global nature of grain markets demand: unknown destinations led with 1.242 MMT, Japan imported 836,700 MT, South Korea took 751,500 MT, and Mexico purchased 422,600 MT. Supporting product exports also strengthened, with sorghum sales hitting 526,800 MT.

Managed Money Reduces Short Exposure

Professional traders have shown limited appetite for expanding bearish positions in grain markets futures. According to Commitment of Traders data released Friday, managed money reduced their net short position by just 450 contracts in the week through January 20. The remaining net short stance stood at 81,324 contracts—still substantial but showing a cautious retreat from maximum bearish exposure.

Brazil Production Concerns Shadow Grain Markets Outlook

Grain markets observers are monitoring Brazil’s crop development with heightened attention. AgRural estimates reported the center-south region’s first corn crop at just 5% harvested as of Thursday, trailing last year’s 2.2% pace. More concerning for grain markets participants, the critical second crop planting sits at only 4.7%, significantly behind the 8.6% progress achieved during the previous 2024/25 season. Despite the slower pace, AgRural raised its full-season production estimate by 0.6 million metric tons to 136.6 MMT, suggesting expectations of accelerated activity ahead.

Contract settlement prices reflected the mixed tone: March delivery closed at $4.30½ (+6½ cents), May finished at $4.38 (+5¾ cents), and July settled at $4.43¾ (+5¼ cents), with nearby cash at $3.93½. Early Monday trading has trimmed approximately 2 cents from these prices as grain markets digest the week’s developments.