Corn Futures Face Pressure as the Weekend Market Takes Shape

Corn futures retreated across multiple contract months as the Friday session wound down, with December contracts particularly affected following the expiration of their options. The benchmark December contract lost 4¾ cents throughout the week, settling at $4.25½ by close—down a penny on the day. Cash corn prices tracked lower alongside futures, with the CmdtyView national average dropping to $3.87¼, reflecting the broader weakness in the weekend market.

Production Data Weighs on Market Sentiment

The USDA’s Grain Crushing report, released earlier this week, revealed that ethanol producers consumed 463.44 million bushels of corn during August. While this marked a modest 1.2% month-over-month increase from July, it represented a notable 3.36% decline compared to August of the prior year—a dynamic that may be influencing current market positioning as traders assess demand trends.

Incoming contracts also showed softness. March 2026 corn futures closed fractionally lower at $4.37½, while May contracts eased to $4.44¾. The nearby cash position held at $3.87¼, maintaining pressure across the futures curve.

Institutional Positioning Shifts

Recent CFTC positioning data underscored shifting sentiment among larger market participants. As of the week ending October 7, managed money traders held a net short position of 141,966 contracts in corn futures and options—an addition of 6,656 contracts from the previous week. This growing bearish stance reflects concerns about supply dynamics and demand recovery.

South American Planting Lags Expectations

Argentina’s corn planting progress has emerged as another focal point for market analysis. The Buenos Aires Grain Exchange reported that planting had reached 37.3% of the anticipated area, up just 0.7 percentage points week-over-week. This pace trails last year’s schedule, potentially affecting Southern Hemisphere production forecasts. On a positive note, 79% of the emerging crop was rated in excellent to normal condition, providing some support to medium-term outlook assessments.

As the weekend market develops, traders are digesting the interplay between domestic ethanol demand, positioning shifts, and Argentine harvest potential—all factors shaping near-term price discovery in grain futures.