Chicago Board of Trade corn futures closed higher on Tuesday on tight stocks of corn, but gains were slowed in new-crop months on prospects for a bumper 2012 US corn crop. Informa Economics Chief Executive Bruce Sherr said on Tuesday the company has pegged US 2012 corn plantings at 96.4 million, up from its previous estimate of 95.5 million and above USDA's current forecast for 95.9 million. It would be the largest corn area seeded in the United States in 75 years.
USDA on Monday said 3 percent of the US corn crop had been planted, below an average of analysts' estimates for 5 percent but above the 2 percent planting pace of a year ago and above the 2 percent five-year average. Occasional showers this week in the US Midwest will slow early corn plantings, but drier weather next week should speed the seeding pace, said Don Keeney, meteorologist for MDA EarthSat Weather.
Argentina's biggest grains exchange lowered its forecast for 2011/12 corn production to 19.7 million tonnes from 19.8 million tonnes previously. Too much fuss over soyabean/corn ratio? Maguire. The July/December was at $1.10-1/2 per bushel, premium July, the widest in seven months. The December corn/November soya ratio was at 2.52. Key support for the May contract at its 50-day moving average of $6.46 and resistance at its 200-day ma of $6.64-1/2. The nine-day RSI was at 60.