Corn Futures Higher on Less Shipments from India

It appears the country of India may be shipping less corn for reasons two-fold: pests found in their corn shipments, and a higher vaulted rupee.  Vietnam is said to have recently rejected a cargo shipment of corn because pests were found in the cargo.

India is Asia’s biggest corn exporter, and last year they exported 2.5M tons.  In their fiscal year that started last October, it appears corn exports will not meet their estimated 3M tons, and that shortfall may come – at least in part – from US markets.

Kevin Craney, senior commodities broker with RJO Futures in Chicago, said in an e-mail interview regarding the current corn futures situation, “With a U.S. economy that continues to show signs of improvement, the potential for higher grain demand is possible and that continues to drive prices higher.  With corn running up against resistance levels, this market is in need of a fresh catalyst in order to make a new leg higher.”

The trend in corn futures is “technically” up, however, this market has been trading sideways for the most part of these past two months.  I am patiently awaiting a clearer picture to unfold to be more confident in future purchases of this market.

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