CBOT corn futures rose on Thursday due to reduced harvest forecasts for Argentina and a weaker dollar. May corn settled at $4.65¼ a bushel. USDA reported corn export sales exceeded forecasts, with Mexico as the top buyer. Grain markets stabilized after initial declines amid tariff announcements.
Corn futures at the Chicago Board of Trade (CBOT) increased on Thursday, driven by a diminished harvest forecast for Argentina and a weaker U.S. dollar. The May corn contract (CK25) concluded the day with a rise of four and one-half cents, reaching a price of $4.65¼ per bushel.
The Rosario Grains Exchange in Argentina reduced its projections for the country’s corn and soybean production for the 2024-25 crop year, which has positively impacted U.S. corn and soybean prices. Additionally, the U.S. Department of Agriculture (USDA) reported that U.S. corn export sales for the 2024-25 period were recorded at 967,300 metric tons, exceeding analysts’ expectations ranging from 725,000 to 1.4 million metric tons.
Among the buyers, Mexico emerged as the largest importer of U.S. corn in the reported week, according to USDA data. This comes despite prevailing trade tensions with the U.S. administration. Following a period of volatility stemming from the introduction of higher U.S. tariffs on steel and aluminum imports, grain markets stabilized.
In summary, CBOT corn futures have responded favorably to lower production forecasts from Argentina and robust U.S. export sales, particularly from Mexico. The market remains sensitive to geopolitical developments, particularly regarding trade tensions and tariffs, which can significantly impact grain pricing.
Original Source: www.tradingview.com
