Funds Cut Corn and Hog Bets as Early USDA Ratings and Mexican Screwworm Push Farm Markets Around

Weaker first crop ratings, heavy managed‑money selling, and a near‑border screwworm outbreak are driving mixed grain declines and volatile livestock prices.

Overview

USDA’s first crop ratings showed U.S. corn at 67% good or excellent and soybeans at 66% good or excellent which came in below trader expectations and weighed on nearby futures.
CFTC Commitment of Traders data for the week ending May 26 show managed‑money slashed corn net longs by about 87,850 contracts and cut lean hog longs by roughly 20,728 contracts which amplified price swings.
USDA FGIS export inspections reported 1.728 million metric tons of U.S. corn shipped in the week ending May 28 with Japan the top destination providing near‑term support for corn despite broader weakness.
USDA APHIS reported about 1,981 active New World Screwworm cases in Mexico including infections in border states that raise short‑term biosecurity and trade risks for U.S. livestock and packing operations.
Market moves have been uneven with wheat posting broad losses, corn and soybeans trending lower despite export flows, and cattle and hog contracts swinging as traders priced ratings, fund de‑risking, and health and demand signals; the shifts matter for ranch incomes, processing flows and export volumes this season.