On Thursday, CBOT corn futures rose due to lower Argentine crop estimates and a weaker dollar. May corn settled at $4.65-1/4 per bushel. The Rosario Grains Exchange downgraded Argentina’s 2024-25 harvest outlook, while U.S. export sales exceeded analyst projections, with Mexico as the main buyer. Markets stabilized following tariff increases causing trade tensions.
On Thursday, corn futures at the Chicago Board of Trade (CBOT) experienced an increase, primarily influenced by downward revisions in Argentina’s corn harvest forecasts and a weakened U.S. dollar. Specifically, May corn (CK25) settled higher by 4-1/2 cents, reaching $4.65-1/4 per bushel.
The Rosario Grains Exchange of Argentina announced reduced projections for the country’s corn and soybean production for 2024-25, which further propelled U.S. corn and soybean futures upwards. Additionally, the U.S. Department of Agriculture (USDA) reported that weekly U.S. corn export sales amounted to 967,300 metric tons for the 2024-25 period, surpassing analyst expectations that ranged from 725,000 to 1.4 million metric tons.
Notably, Mexico emerged as the largest buyer for the week, according to USDA data, amidst ongoing trade tensions involving President Donald Trump. The grain markets rebounded significantly following Wednesday’s turmoil caused by the announcement of increased U.S. tariffs on steel and aluminum products, which led to retaliatory measures from both the European Union and Canada against a variety of U.S. goods.
In summary, the recent upward trend in CBOT corn futures reflects the impact of reduced Argentine crop projections and significant U.S. export sales. The U.S. agricultural market is currently buoyed by active purchasing from Mexico and remains sensitive to geopolitical trade developments. Thus, stakeholders should closely monitor both international agricultural forecasts and trade relations moving forward.
Original Source: www.tradingview.com
