Chicago corn continues to decline after hitting a three-year high

Chicago corn futures extended losses on September 9 for a fifth consecutive trading session, marking their longest losing streak since June. The most-active contract fell as much as 1.1%, although corn prices had reached their highest level in three years just last week.

The previous rally was supported by unfavorable US weather, which weakened yield prospects, as well as disruptions to grain supplies from the Black Sea region. Against this backdrop, investment funds had been aggressively increasing bets on further gains in corn prices.

As of September 1, money managers held the largest net-long position in corn in 20 years of available CFTC data. However, following the sharp rally, the 14-day relative strength index (RSI) moved above 70, indicating that the market had become overbought. With no new bullish catalysts, record long positions began to amplify the price correction.

Additional pressure is coming from the start of the US new-crop harvest. As of September 6, US farmers had harvested 5% of the corn area, with progress running ahead of last year’s pace. The arrival of new-crop grain could increase supplies in the near term.

The next major market driver will be the September USDA WASDE report. Analysts surveyed by Bloomberg expect the agency could lower its forecasts for both US and global corn stocks in the 2026/27 season, potentially providing renewed support to prices.

Tags: corn, prices, futures, Chicago