Crude Slump Pushes Farm Markets Lower as Funds Cut Longs
Crude’s fall after U.S.-Iran deal reports is triggering fund sell‑offs that are driving midweek declines in grains, oilseeds and livestock.
Overview
- A sharp drop in crude oil late Tuesday and Wednesday has spurred speculative funds to trim bullish positions, producing several‑cent intraday losses in corn, soybeans and wheat.
- USDA export inspections show U.S. corn shipments running at a record pace, about 28% higher year‑over‑year for the marketing year, which supports fundamental demand for corn despite price pressure.
- The USDA crop progress report released this week showed rapid planting with about 86% of corn and 79% of soybeans planted, reducing near‑term weather risk but leaving July pollination as a key future price driver.
- CFTC Commitments of Traders data confirm managed‑money cuts to net longs in corn, soybeans and CBT wheat, which has amplified volatility across the grain complex while cotton saw managed‑money length added.
- Livestock markets are softer after USDA Cattle‑on‑Feed and slaughter data showed larger feedlot placements and mixed marketings, and biosecurity issues in Mexico add uncertainty for regional supplies and cash prices.