Tatsiana Ketrar
The current strengthening of the US Dollar seems to be affecting the USA’s domestic market of corn. Another factor exerting pressure on the market is a decline in the market of soybeans. On the other hand, higher wheat prices are supporting the US market of corn.
The weekly report on ethanol production shows a decline by 8000 barrels a day down to 797 000 barrels a day, which is below the USDA consumption forecast. According to the USDA, the domestic ethanol consumes 4.5bn bushels per year or 87.8 million bushels a day.
The weekly export sales reached 282 300 tons for same-season delivery and 371 000 for next-season delivery. This slightly exceeded the forecast for the aggregate weekly export of 200-500K tons.
As corn prices slightly dropped amid logistic problems in Brazilian seaports, China’s overall import of American corn increased up to 600 000 tons in February.
According to Reuters, despite a decline in the US market of corn futures, American farmers are not going to cut corn acres as most of them have been fertilized.
The charts below, courtesy of , reflect the current state of affairs in the market of corn. The experts say that due to seasonality, we may face prolonged flattish moves within a wide price range in spring.
Tatsiana Ketrar
