Stock exchange news, corn. Corn market is currently influenced by a number of differently directed factors. Bullish factors include:
1) Current weakening of dollar is, first of all, a speculative factor and, secondly, proportionally rises the competitiveness of American corn at global market.
2) High export demand for American corn, which is not worse and even better than during the corresponding period last season.
3) Shortage of global corn production in 2012 by 0.45%, shortage of global transit stocks by 2.18% to 5-year minimum, and, on the contrary, increase of expected export in America by 2.94%, according to February report of USDA.
4) Rather tense situation with corn supply in the USA that followed a drop in predicted volume of ending stocks; after this ratio of stocks to consumption has dropped to 6.3%, which is a 16-year minimum.
5) Record high volume of ethanol production in the USA during this season.
6) Lasting farmers’ demand for corn, which is to be used for spring sowing.
Bearish factors include:
1) Increase of corn crop areas in the USA during this season by 2.1% to the record of 94 mln.acres
2) As of February 17, 15% of corn has been harvested in Brazil, which is 9.5% more than during the same period last year.
3) Yield of 2011 in China has been increased by 8.2% to the record of 192 mln.tons, which may cause shortage of Chinese demand for American corn.
According to analysts of the Department of Derivatives Trading within , corn prices historically drop since March due to the start of sowing in northern hemisphere and, consequently, smaller uncertainty about future crop.
