Chicago corn falls on favourable US weather, strong exports limit losses
- Wheat fell, while soybeans were flat
BEIJING: Chicago corn futures fell on Friday as beneficial weather in the US favoured crop development, although strong exports kept a floor under the market.
Wheat fell, while soybeans were flat.
The most-active corn contract on the Chicago Board of Trade (CBOT) dropped 0.2% to $4.61-1/2 a bushel by 0340 GMT, but has gained 1.3% so far this week. Soybeans were almost flat at $11.94-3/4, but have climbed 1.5% so far in the week.
Wheat lost 0.4% to $6.45-1/2 a bushel, but has gained 1.5% so far this week. Slightly wetter weather is forecast for the US Midwest in the coming weeks and is expected to benefit corn development, according to Commodity Weather Group.
Next week, warmer-than-normal temperatures in the northern Midwest should accelerate early growth, forecaster Vaisala said.
The US Department of Agriculture reported net old-crop US corn export sales totalled 2,125,316 metric tons in the week ended May 14, above trade expectations. New-crop sales of 281,430 tons were at the high end of a range of trade estimates.
The weather also looked generally favourable for early development of US soybean crops, analysts said.
Net US soybean export sales last week rose to 351,423 tons for shipment in the 2025/26 marketing year and 172,729 tons for 2026/27.
Net wheat export sales were at 166,342 metric tons for shipment in the 2025/26 marketing year and 130,488 tons for 2026/27. Both crop sales were in line with trade expectations.
In Argentina, a major world supplier of wheat, President Javier Milei said the country will cut its export tax on the grain to 5.5% from 7.5% starting from June. Export taxes on soybeans could also be cut by between 0.25 and 0.50 percentage points next January, Milei said.
Argentina’s 2025/26 soybean harvest is expected to reach 50.1 million tons, up from the previously estimated 48.6 million tons, thanks to higher-than-expected yields as the harvest progresses, the Buenos Aires Grain Exchange said on Thursday.
The exchange also increased corn output forecast by 3 million tons to a record 64 million tons, driven by an upward revision to planted area.
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