CBOT corn futures rose on Thursday due to lower harvest estimates from Argentina and a weaker dollar. The May contract increased by 4.5 cents to $4.65-1/4 per bushel. USDA reported corn export sales exceeded expectations, with Mexico being the top buyer. The grain markets rebounded after concern from tariffs imposed on imports.
On Thursday, corn futures at the Chicago Board of Trade (CBOT) experienced an uptick, attributed to reduced projections for Argentina’s corn crop alongside a weakening dollar. The May corn contract (CK25) saw an increase of 4.5 cents, concluding at $4.65-1/4 per bushel.
The Rosario Grains Exchange in Argentina revised its forecasts for the country’s corn and soy harvests for 2024-25 downwards on Wednesday, thus providing further upward momentum to U.S. corn and soybean prices. The USDA reported that U.S. weekly corn export sales stood at 967,300 metric tons for the 2024-25 period, surpassing analysts’ estimates which ranged between 725,000 and 1.4 million metric tons.
Notably, Mexico emerged as the leading weekly purchaser of U.S. corn, as indicated by USDA data, despite the ongoing trade tensions involving U.S. President Donald Trump. The grain markets experienced a recovery after the previous day’s instability, which was caused by new tariffs imposed by the U.S. on steel and aluminum imports, resulting in the European Union and Canada announcing retaliatory tariffs on various American products.
In summary, the CBOT corn futures saw gains due to lowered forecasts for Argentina’s corn production and favorable U.S. export sales data. The adjustment in Argentina’s harvest outlook has provided support for U.S. corn and soybean prices. Despite trade challenges, Mexico’s strong demand for U.S. corn and the market’s recovery from tariff-related concerns highlights the dynamic nature of the grain markets.
Original Source: www.tradingview.com
