Chicago Board of Trade corn futures increased due to reduced Argentine corn crop forecasts and a weak dollar. The May corn contract closed at $4.65-1/4 per bushel. The USDA reported robust U.S. corn export sales, with Mexico as the largest buyer. Market recovery followed trade tensions related to U.S. tariffs on imports.
On Thursday, corn futures at the Chicago Board of Trade (CBOT) increased following a reduction in Argentina’s corn crop estimates and a weakening dollar, which contributed to rising prices. The May corn contract (CK25) closed at $4.65-1/4 per bushel, up by 4-1/2 cents.
The Rosario Grains Exchange of Argentina revised its projections for the 2024-25 corn and soybean harvests downwards, providing additional support for U.S. corn and soybean futures. In a report by the USDA, weekly U.S. corn export sales reached 967,300 metric tons for 2024-25, surpassing analysts’ expectations that ranged between 725,000 and 1.4 million metric tons.
Despite ongoing trade tensions involving U.S. President Donald Trump, Mexico emerged as the largest buyer during the week, according to USDA data. Following volatility in the grain markets prompted by higher tariffs on steel and aluminum imports, the European Union and Canada announced retaliatory duties on various U.S. products, resulting in recovery for grain markets.
In summary, the combination of lowered forecasts for Argentina’s corn crop and favorable U.S. export sales has positively impacted corn futures at the CBOT. Mexico’s strong purchasing activity, amidst challenging trade relations, further emphasizes the dynamics influencing the market. Overall, the resilience of grain markets in response to trade tensions demonstrates their ability to adapt to changing economic conditions.
Original Source: www.tradingview.com
