CBOT corn prices rose due to lower Argentine harvest expectations and a weak dollar, with May corn settling at $4.65-1/4. Argentina’s Rosario Grains Exchange cut forecasts for the 2024-25 corn and soybean harvests, strengthening U.S. futures. U.S. corn export sales exceeded estimates, with Mexico as the top buyer. Grain markets stabilized after U.S. tariff announcements prompted international retaliations.
On Thursday, corn futures at the Chicago Board of Trade (CBOT) increased due to lower projections for Argentina’s corn crop and a decline in the dollar’s value. The May corn contract (CK25) rose by 4.5 cents, settling at $4.65-1/4 per bushel.
The Rosario Grains Exchange in Argentina revised its estimates for the 2024-25 corn and soybean harvests downward, providing further support to U.S. corn and soybean futures. This adjustment in Argentina’s output impacts global supply dynamics and enhances U.S. market positions.
The USDA reported that U.S. export sales of corn reached 967,300 metric tons for the 2024-25 season, surpassing analyst predictions, which ranged from 725,000 to 1.4 million metric tons. Mexico emerged as the leading buyer during this period, despite ongoing trade tensions with the U.S. government.
After experiencing volatility on Wednesday due to the announcement of increased tariffs on steel and aluminum imports by the U.S., grain markets stabilized. The European Union and Canada reacted by indicating plans to impose retaliatory tariffs on various U.S. goods, which contributed to fluctuations in the commodity markets.
The recent CBOT corn gains are driven by lowered Argentine harvest forecasts and a weakening dollar. This situation underlines the interconnectedness of global agricultural markets, where shifts in production estimates significantly affect pricing. Furthermore, U.S. corn export figures surpassing expectations indicate robust demand, especially from Mexico, amid ongoing trade challenges. The response of international markets to U.S. tariffs also highlights the ongoing complexities in trade relations affecting commodity prices.
Original Source: www.tradingview.com
