Fund Selling, Strong Corn Shipments and Screwworm Cases Jolt U.S. Farm Markets
Big fund position shifts, a strong USDA corn inspections print, weak soybean shipments, Mexico’s ban on U.S. cattle imports have sharpened price risk ahead of Thursday’s WASDE
Overview
- Corn staged a modest recovery after USDA export inspections for the week of June 4 showed 1.911 million metric tons shipped, a print that traders said lifted nearby futures on Wednesday.
- Soybean demand signals remain weak because USDA FGIS reported just 398,186 tonnes of soybean shipments for the week ending June 4, a fall of more than 20% from the prior week.
- Managed‑money funds drove much of the grain swings with a large liquidation of corn and soy longs and a record Tuesday‑to‑Tuesday increase in net short positions in Chicago wheat that pressured prices before recent intraday rebounds.
- Animal‑health developments added new disruption when a second New World Screwworm case was confirmed in southern Texas and Mexican authorities suspended U.S. cattle imports late Tuesday, sending cattle futures and feeder markets into volatile trading.
- Traders are watching Thursday’s USDA WASDE and Crop Production reports for possible cuts to U.S. carryouts and production that would give markets firmer direction and could change export pacing, ethanol demand and local rancher decisions on marketing cattle.