Chicago Board of Trade Market News
Outlook: Forecasting the market has grown difficult. Corn export sales are in the expected range with some near-term opportunity given that the U.S. is offering the lowest priced product at this time. There are still some global economic uncertainties, though market reactions were calmer than expected following the terrorist attacks in Paris. The strong dollar and an impending interest rate hike remain watchful factors.
Monsanto offered more bullish news to its investors with a prediction that corn prices will recover to $4.50 per bushel during the next eight to 12 months. That would be 14 percent to 34 percent above the corn price range forecast issued by USDA for the marketing year. At the same time that grain markets have been trading in a narrow range, there has been strong downward pressure on cattle.
A major near-term factor could be the presidential election runoff in Argentina this Saturday. Candidate Mauricio Macri has promised to reduce taxes on corn exports and his opponent, Daniel Scioli, has hinted at such a move. Regardless of which candidate wins, some level of devaluation of the peso is expected to follow.