Corn futures seem to lack any strength with plentiful global supplies and now a new report out of Argentina suggesting its going to be another boom year for corn production there. Corn futures ended the day down three-quarters of one cent to just above $3.60 per bushel at the Chicago Board of Trade today.
Today the USDA raised its official estimate for Argentine corn production for their 2015-2016 harvest by an additional 1.4M tons (to 27M tons total) equal to last years record bumper-crop. Included in this estimate is the reported additional 200K acres of corn seeding encouraged by the government.
Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, shared his fundamental view of the corn futures market by stating, “I understand the Argentine government helped to improve corn profitability for their farmers there by eliminating taxes on corn exports.” Craney added, “This is a major hand-up for grain farmers there with this kind of incentive.”
Corn futures trend has been a roller-coaster since last summer trading above and below its 18-day moving average for a few weeks at a time. Corn futures are at a crossroads at this time in the middle of its .25 cent trading range.
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