The corn market experienced notable fluctuations this week, influenced by weather forecasts and market sentiment. Here is a detailed overview of the recent developments:
Weather Impact on Corn Prices
- Corn futures in Chicago were under pressure due to forecasts predicting wetter conditions in the Midwest USA than previously expected.
- The risk of yield losses due to lack of rainfall has been mitigated for now, although the western part of the Corn Belt may remain dry.
- Overall, the weather outlook has improved significantly, causing commodity traders to react sensitively to forecasts.
Market Sentiment and Speculation
- Investment funds maintain large short positions (bets on falling prices) despite low price levels, anticipating record yields which require near-optimal weather conditions.
- Traders respond to potential issues with covering purchases, causing prices to spike temporarily, as seen at the beginning of the previous week.
- When conditions stabilize, short selling resumes.
France Corn Crop Conditions
- The weekly report from FranceAgriMer on Friday revealed minor changes in the corn crop conditions in France.
- Fields rated as excellent increased to 5%, up from 2% the previous week.
- The proportion of good fields declined from 79% to 77%.
- A year ago, the ratings were similar at this point in time.
Market Overview and Weekly Performance
- The corn market in Chicago closed with losses over the weekend but managed to record a slight gain for the week.
- In Europe, the November contract at Euronext decreased by 6.50 EUR to 209.50 EUR/ton, resulting in a weekly loss of 7.50 EUR (3.5%).
- On Friday, the most traded December futures at the Chicago Board of Trade (CboT) fell by 10.75 cents to 410 cents per bushel (approximately 149 EUR/ton).
- Despite this drop, the weekly balance showed an increase of 5.25 cents (1.3%).
Related posts:
June Price Drop in the Brazilian Corn Market
Wheat Futures Maintain Upsurge Amidst Positive Market Sentiment
Commodity Markets Remain Quiet Except for Rice
Bulgaria Lifted the Ban on the Import of Agriproducts From Ukraine
Corn Market: Final Stages of Harvesting in the U.S.
Vessels Hardly Moving Through “Grain Corridor”
Grain Markets: US Wheat Takes Double Hit from Weather
Corn Global Scenario & India’s contribution