![Funds halt corn sell-off and wait for US crop season to develop [World News]](https://foodcom.pl/wp-content/uploads/2025/03/News-world_14-1520x760.png "Funds halt corn sell-off and wait for US crop season to develop [World News]")
- Investment funds have ended their record sell-off of corn, signaling a possible slowdown in downward pressure on the market.
- Corn futures prices hit their lowest level in five years, falling to $4.38½ per bushel.
- The USDA forecasts a 27% increase in corn stocks for the 2025/26 season, although this is still lower than previously expected.
- The market’s attention is now focused on weather conditions in the US, which could have a key impact on grain yields and prices.
Funds pause corn sell-off – market attention focused on US crop
After an intense period of corn futures selling that lasted from the end of February to mid-May 2025, investment funds have begun to pull back from aggressive selling. During these 11 weeks, more than 420,000 futures contracts were sold, equivalent to 2.1 billion bushels – a record high for such a short period. As a result, December contract prices fell to US$4.38½ per bushel, the lowest in five years.
In the week ended 27 May, fund managers slightly reduced their net short positions in CBOT corn contracts, which may suggest a temporary halt to the downward trend. The market’s attention is now focused on the start of the US growing season and weather forecasts, which could significantly affect yields and further price movements.
USDA forecasts and potential scenarios for the maize market
The US Department of Agriculture (USDA) forecasts that corn ending stocks for the 2025/26 season will increase by 27% compared to the previous year. However, they are 21% lower than forecast in October, leaving room for upward price scenarios in the event of lower than expected yields. A similar situation occurred in 2023, when weather concerns led to short-lived price increases, even though the final yield was a record.
Additionally, funds have increased their exposure to soybean contracts while reducing positions in soybean oil, soybean meal and wheat. Investors are keeping a close eye on upcoming USDA reports on the status of the soybean crop and possible changes to tariff and biofuel policies, which could affect short-term sentiment in grain markets.
