Argentina Supply Competing With US to Affect Corn Futures

Argentina’s corn producers are apparently competing with American corn supply in the Chinese market.  The South American second-biggest corn exporter has temporary agreement to sell China 4M metric tons of corn by September 30th.

China is the worlds second largest corn user, and with growing cities and rising incomes, they are reportedly set to import a record amount of corn in the 2012-2013 time frame.  This temporary agreement for the corn exchange between the two countries will be a first in over a decade.

Today’s strong export sales number were a reminder of just how tight corn supplies are. This data along with a weaker dollar were enough to feed the bulls and push March corn up to technical resistance,” said Kevin Craney, a senior commodities broker with RJO Futures in Chicago, regarding the current corn futures news.

The trend for corn futures is currently up, however the market has been trading sideways for the past two weeks.  I am on the sidelines until the a clearer picture for corn futures emerges.


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