CBOT Corn Futures Increase on Diminished Argentine Harvest Projections

CBOT corn futures rose on Thursday due to reduced Argentine corn harvest estimates and a weaker dollar. May corn settled at $4.65-1/4 a bushel. The USDA reported strong export sales, with Mexico being a major buyer. The market stabilized after recent tariff-related fluctuations.

On Thursday, corn futures at the Chicago Board of Trade (CBOT) experienced an upswing due to decreased projections for Argentina’s corn harvest coupled with a weaker dollar. Specifically, CBOT May corn (CK25) closed at $4.65-1/4 per bushel, reflecting an increase of 4.5 cents.

The Rosario Grains Exchange in Argentina revised downward its harvest forecasts for both corn and soy for the 2024-25 season, which subsequently provided a boost to U.S. corn and soy futures. In addition, the U.S. Department of Agriculture (USDA) reported that weekly U.S. corn export sales reached 967,300 metric tons for the 2024-25 cycle, surpassing analysts’ expectations which ranged from 725,000 to 1.4 million metric tons.

Among the highlights, Mexico emerged as the largest weekly purchaser of U.S. corn, as indicated by USDA data, despite ongoing trade tensions involving U.S. President Donald Trump. The grain markets regained stability after a tumultuous period on Wednesday resulting from the announcement of higher U.S. tariffs on all steel and aluminum imports, which incited the European Union and Canada to impose retaliatory duties on various U.S. goods.

In summary, the recent gains in CBOT corn futures are attributed to a reduction in forecasted corn yields in Argentina and the impact of a weakening dollar. The supportive factors include increased U.S. export sales and Mexico’s significant buying activity. Additionally, the grain markets showed resilience despite previous instabilities caused by tariff implementations.

Original Source: www.tradingview.com