Chicago Board of Trade Market News
Outlook: U.S. weekly export sales of corn were over one million MT when the trade expected 800,000 MT at best.
There have been no deliveries against March contracts since first notice day, likely due to March/May spreading.
Early spring weather looks warm and this should mean earlier planting of corn in southerly growing regions, and USDA predicts corn planting area to be 2 million acres above last year’s level. However, farmers may not get support (e.g. credit) from their bankers for that much crop. Bankers are a skittish lot and it takes half the money to plant soybeans as it does corn. More will be known when the USDA Planting Intentions report is issued at the end of this month. Between now and then, March 15, 2016 is the deadline for purchasing crop insurance, which will guarantee corn revenue at $3.87/bushel on average, versus $4.15 for last year’s crop.
Argentine corn is finally being offered at prices below those of the U.S. Gulf and local traders say farmers responded to new policies by potentially growing 26 to 27 MMT this season.