Well, this is the time of year when grain prices can quickly respond to weather forecasts or trade data.
Chicago corn futures fell 2% on Thursday morning after favorable weather in the Midwest confirmed the forecast for a big crop this year. Disappointing weekly US exports also led to lower prices.
Concerns about second wave of coronavirus in the world led to a decline in corn futures in the past few weeks.
Wet weather and moderate heat in the Midwest have eased grain traders’ concerns about crop stress after the recent dry streak.
“Given that 400 million tons of US corn is growing on our way, it’s hard to put forward a bullish argument for corn,” said Reuters Ole Howe, Director of Advisory Services at IKON Commodities Agricultural Brokerage Agency in Sydney.
Uncertainty over Sino-US relations has led to concerns about weak Chinese purchases of US agricultural products, including corn and soybeans.
If readers recall, we used ship tracking software to determine “peak hour“Bulk carriers carrying soybeans were heading from Latin America to Asia / China – while activity in North America was very low.
The phase of US-China relations on the tracker chart presented by the Peterson Institute for International Economics (PIIE) shows that China’s monthly purchases of US goods covered by a first-phase deal are still well below commitments agreed at the beginning of 2020.
Iowa Soybean Association President Tim Bardol said Tim Nbc news that President Trump’s signing of the first stage bargain was a disappointment, and China’s obligations for the bargain are likely to be missed.
“At the moment, this has not done almost what we hoped would happen to him,” Bardol said. “At the moment, we are running out of time to get closer to the numbers we could hope for.”
Last Wednesday, Bardol held discussions with the House and Facilities Committee. US Trade Representative Robert Lighterheiser told him that China is expected to fulfill trade purchase agreements, although, as we noted, from day one, the commitments were unrealistic goals,