Corn Futures from Brazil, USA and China

Summer season started with the high price corn futures and fluting figures of soybean and corn. All producers and traders have an eye on corn futures to be settled for more revenue.  Most famous corn futures news from Brazil, USA, and China are highlighted in this report.

cbot corn futures

Corn future in Brazil

We can see surprising condition of corn futures in Brazil as it was highlighted in corn futures quotes. The price of corn was expected to rise last month where Brazil was falling with short of corn production.

The status of USDA Weekly Corn futures Progress Report is as it follows:

There are total 18 states who planted 93 % of corn acreage in 2015. The reason corn future prices climb up is lack of excellence in production system. There is not a required amount of corn to feed chicken in Western Paran, which is causing food starvation for birds in Brazil. The Brazil Poultry industry has lost 35, 000 of chickens because Corn was not available in the market. All feed suppliers are facing difficulties in feeding produced chickens. The safrinha corn harvest brought some hope for the feed suppliers.

corn future prices

Safrina is the second corn crop of Bazil also got short and reached to 50. 8 million tones where it was 54.6 million tons short in 2014. The world has seen a critical condition in production and availability of corn. Now all the expectations are connected to United States.

corn futures quotes

Brazil, the second exporter of corn and it has exported 17.7 percent of total corn in the world which further declined. Estimators have reported that corn crop is in excellent condition for this year, but weather can have a negative impact on it. A drastic change in corn futures charts is visible as it started from $370 to $413 and then estimated to remain high to reach $460.

Corn futures in USA

Corn futures in USA are most interesting corn futures news of this season. Investors started making profits after the mid of May corn futures prices increased rapidly as corn was effected due to wet weather. This prevented decline in corn prices. One of the breaking news of previous months is that the active corn contract fell 0.7 percent on the Chicago board of Trade  and came to the figure if $3.96-3/4 a bushel by 0241 GMT, but corn climbed $4.00-1/2 a bushel in their week of April and it became one of the most expensive commodity of USA.

A proposal holds corn market for higher ethanol blending. This proposal was to increase corn-based ethanol and bio fuel as fuel producers will mix these two ingredients in diesel and gasoline in 2017.

corn future prices

Corn futures prices fell sharply after May 18th, 2016, because of US interested rate climbed up quickly. NOAA forecast encouraged fund players to sell corn in market.  Commodities came under pressure which proved bad for grain prices. It increased inflation as dollar index was also high. Analysts estimated that if interest goes up then inflation can go down.

The seconding threatening factor for grains was weather report which was going to affect soybean crop. One more analysis came about soybean and corn that corn futures charts were giving a good representation of price in the market.

Breakout of Corn ETF

Teucrium Corn Fund (NYSEArca: Corn) offered breakout among other agriculture exchange traded products. Cbot corn futures provide unleveraged direct exposure to corn for investors without out the requirement of corn futures count. corn futures charts

The prices of oilseeds supported corn farmers to swap corn for soybean on three million more acres in the farm belt.  Corn traded prices kept fluctuating downward and upward and Cbot corn futures contract significantly settle below $4-a bushel because of wet weather.

Corn contracts which were dated in July climbed 10-month high before it turns lower. The expectations of farmers to plant fewer corns hold up longer-dated corn futures.

July CBOT Report: ¼ Cent or 0.1% – $3.97 ½ a bushel September CBOT analysis: ¼ Cent or 0.1 % – $4 a bushel

Breakout of corn flour in Venezuela

The price of corn flour in Venezuela was controlled by government, but then it climbed up 900 percent. It is a common staple of Venezuela local cuisine. The socialist government settled corn price in corn futures quotes for 15 months at 19 bolivares a kilo, but the prices increased to 190 bolivares a kilo which directly increased chicken price. A debate between Venezuela Association of Corn Industries and Government include the main points of cost of corn production.

Corn surplus in China

In recent times, China announced that it will scrap its corn stock piles which leave China as one of the biggest corn supplier in the world, but premium has affected corn. China has made tremendous efforts to cut domestic corn stocks by avoiding its imports which set a pressure on US sorghum, renewable fuel market, and wheat market.

10 Nov 2014, Yinchuan, Ningxia Hui Autonomous Region, China --- (141110) -- YINCHUAN, Nov. 10, 2014 (Xinhua) -- A farmer strips corn cobs at the Nuanquan farm in northwest China's Ningxia Hui Autonomous Region, Oct. 10, 2014. China's consumer price index, a main gauge of inflation, grew 1.6 percent year on year in October, the National Bureau of Statistics (NBS) said Monday. (Xinhua/Peng Zhaozhi) (wf) --- Image by © Peng Zhaozhi/Xinhua Press/Corbis
10 Nov 2014, Yinchuan, Ningxia Hui Autonomous Region, China — (141110) — YINCHUAN, Nov. 10, 2014 (Xinhua) — A farmer strips corn cobs at the Nuanquan farm in northwest China’s Ningxia Hui Autonomous Region, Oct. 10, 2014. China’s consumer price index, a main gauge of inflation, grew 1.6 percent year on year in October, the National Bureau of Statistics (NBS) said Monday. (Xinhua/Peng Zhaozhi) (wf) — Image by © Peng Zhaozhi/Xinhua Press/Corbis

Last year China launched investigation of subsidizing of US DDGs which was a step to reduce imports of corn and other products. This investigation will cover more than 70 ethanol companies including Pot LLC, Big River Resources LLC and Marquis Energy.

Brail, USA, and China are most prominent countries for corn futures. Investors and analysts have their eyes on more updates from these countries.

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