US corn futures fell on disappointing weekly US export sales and profit-taking after multi-year highs set this week.
Latest corn futures news
As of today, we have the next picture on the Chicago Mercantile Exchange:
- July corn fell 11.1/2 cents to $7.98-1/2 a bushel
- July wheat fell 22-3/4 cents to 10.74-3 dollars per bushel
- July soybeans rose 8-1/2 cents at $17.25-1/2 a bushel.
Corn losses widened after the USDA reported the US corn export sales for the week ended April 14 at 1.268 million tonnes (past and new crop included), below the range of corn futures quotes expectations.
What happened to corn futures prices today?
The market weakened after Barchart corn futures contracts hit $8.14 a bushel, the highest on a continuous chart of most active corn contracts since September 2012.
“The market was going straight up, so we needed to take a breather,” Ted Seyfried, chief agricultural strategist at Zaner Group, told Reuters.
However, fears about the reduction of world grain supplies supported the corn futures market. The International Grains Council forecasts that global maize production will decline by 13 million tons in the 2022/23 season to 1.197 billion tons, reflecting lower harvests in Ukraine and the United States.
Impact on corn futures prices
It is noted that cold weather conditions and slow sowing dynamics again support corn futures quotes. July futures for US corn rose by $0.08 per bushel, while futures for the Black Sea rose by $0.5 per bushel.
“The dynamics of corn sowing in the United States has reached 7% of the projected area, with an average of 15% over the past 5 years. The pace of US corn exports for the week amounted to 1.65 million tons. The dynamics of the first harvest of corn in Brazil reached 65% of the forecast,” traders comment.
According to them, in the Ukrainian market corn futures prices today remain in a stable range.
Prices for July futures for corn on world exchanges:
- on the Chicago Stock Exchange – $ 7.9 per bushel;
- on the Black Sea basis — $345.5 per ton;
- on the basis of SPOT, Izov (DAT) – $240 per ton.
Who runs the corn futures prices?
China, the world’s second-largest economy, has a strong influence on demand for corn futures, as does the United States, the world’s largest exporter of corn. These guys are running the world of corn futures news. Also you can see euro dollar futures and T-Bond Futures.
In addition to the United States, major exporters of corn are Brazil, Ukraine, Russia, India, and South Africa. Changes in the economies of these countries affect the global maize balance. By correctly assessing Barchart corn futures charts and the economic phases in importing and exporting countries, one can better understand the logic of price movements in the futures market.
Corn futures is without a doubt an attractive trading instrument. However, there are many factors that affect the futures market for this grain. If you are a position or medium-term trader, try to keep the above factors in mind to successfully trade corn futures.