Dec-21 corn prices tested $5 per bushel last Wednesday before rallying and trading limit up on Thursday. Since May 7, nearby Jul-20 futures fell from $7.32 per bushel down to $6.21 per bushel Wednesday, a one-month low. Prices on Friday closed at $6.56 per bushel in a quiet session prior to the Memorial Day holiday.
Pressure on grain/corn prices over the last three weeks has been mostly attributed to good weather, the prospects for more corn acreage, and more speculative liquidation of a large net long position.
As of Tuesday, May 18, speculators liquidated almost 34,000 long contracts, bringing the net long position down to 416,000 contracts, the lowest level since mid-December. More profit-taking has likely occurred since then, especially with the sharp declines in futures prices lately. Moving ahead, if good weather outlooks continue and the probability of a very good to record crop solidifies, that net long position may erode quickly.