Fund Liquidations and Strong Corn Exports Drive Volatile U.S. Farm Markets

Large speculative cuts have collided with heavy U.S. corn shipments, producing swings in grain and livestock prices and raising near‑term supply and health risks.

Overview

CFTC data for the week ending May 26 showed managed‑money slashed 87,850 net long corn contracts, a move that sharply reduced speculative exposure and pressured futures liquidity.
USDA export sales for the week of May 21 reported 1.015 million metric tons of corn sold with Mexico the top buyer, and FGIS inspections for the week to May 28 showed marketing‑year corn shipments up about 27% year‑over‑year.
Livestock balances tightened as USDA estimated federally inspected cattle slaughter at 448,000 head last week, down roughly 39,600 from a year earlier, while feeder and hog fund positions fell to the smallest net longs since 2024.
A new world screwworm case reported in Mexico roughly 31 miles from the U.S. border has added animal‑health and packing‑eligibility risk that keeps cattle and hog markets especially sensitive to supply disruptions.
Traders now face a crosscurrent where fund repositioning can amplify short‑term moves even as export demand, biofuel use, and South American crop estimates provide the underlying supply and demand signals to watch next.