The price of %Corn, the U.S.’s biggest crop, is down 14% as a record harvest is anticipated in the current 2025-2026 marketing year.
Corn prices had run up more than 30% between last summer and February of this year. But since then, prices have collapsed amid concerns of an oversupply in the U.S.
Commodities traders see further price declines ahead for corn, raising their bearish bets in recent weeks.
The latest data from the Commodity Futures Trading Commission (CFTC) shows that commodities traders have 333,718 short positions in corn, more than double the total seen at the beginning of March this year.
Corn prices have historically fallen during the summer months of June, July and August, with average declines of more than 3% in the last decade, according to market date.
However, this year’s price decline is much worse due to growing signs of a bumper corn crop in the U.S. that risks swamping the global market with oversupply.
In recent weeks, corn prices have moved below their 200-day moving average of $4.49 U.S. a bushel and they have been below the 50-day and 100-day moving averages for a month.
There are also signs that China, a big consumer of corn for livestock feed, has been curtailing its U.S. purchases amid an ongoing trade dispute between the two countries.
Analysts at %BankofAmerica (NYSE: $BAC) recently issued a sell rating on corn, among other commodities including natural gas, wheat and cotton.
