U.S. Crop Ratings Fall Short as Strong Corn Exports and Big Fund Selloffs Drive Market Volatility

Traders are weighing a weaker-than-expected initial corn condition reading against heavy export shipments and rapid speculative liquidations that could push prices and livestock flows in either direction.

Overview

The USDA’s first corn rating came in at 67% good or excellent, below trade estimates and reported after planting reached roughly 93 percent of U.S. acres.
USDA FGIS export inspections showed 1.728 million tonnes of corn shipped in the week ending May 28 and marketing-year corn exports about 27% above last year, supporting demand fundamentals.
CFTC Commitment of Traders data showed managed-money funds cut roughly 87,850 corn contracts in the week ending May 26, a rapid liquidation that removed a key speculative support for prices.
USDA APHIS reported nearly 2,000 active New World Screwworm cases in Mexican border states, a rising animal‑health threat that could affect packing capacity, regional trade and cattle flows into the U.S.
Hog markets remain anchored by steady fundamentals with national base hog prices in the low‑to‑mid $90s and weekly federally inspected hog slaughter near 2.14 million head, though fund selling has trimmed speculative longs and left futures more sensitive to weekly USDA reports.