CBOT Corn Futures Increase Amid Lower Argentine Harvest Estimates

CBOT corn futures rose following reduced Argentine harvest estimates and a weak dollar. May corn settled at $4.65-1/4 per bushel. The USDA reported strong U.S. corn export sales, with Mexico being the top buyer. Grain markets rebounded after recent trade tensions led to tariff implementations.

The Chicago Board of Trade (CBOT) witnessed an increase in corn futures on Thursday, primarily due to a reduction in Argentina’s corn crop estimates and a weakened U.S. dollar, which contributed positively to price gains. Specifically, May corn futures (CK25) closed up by 4.5 cents, reaching a price of $4.65-1/4 per bushel.

On Wednesday, Argentina’s Rosario Grains Exchange revised its forecasts downward for the nation’s 2024-25 corn and soybean harvests, further bolstering U.S. corn and soybean futures. Additionally, the United States Department of Agriculture (USDA) reported weekly U.S. corn export sales totaling 967,300 metric tons for the 2024-25 marketing year, exceeding analysts’ expectations that ranged between 725,000 and 1.4 million metric tons.

Mexico emerged as the largest weekly buyer of U.S. corn, based on USDA data, despite ongoing trade tensions with President Donald Trump. However, grain markets rebounded following a prior decline amidst concerns over increased tariffs on U.S. steel and aluminum imports, which prompted retaliatory trades from the European Union and Canada on an array of U.S. goods.

In summary, the uptick in CBOT corn futures can be attributed to lower corn production estimates from Argentina, along with a declining dollar value. This development, combined with robust U.S. corn export sales, indicates a significant positive shift in the market dynamics. Despite recent trade tensions, Mexico’s continued purchasing underscores resilience in demand for U.S. corn.

Original Source: www.tradingview.com