Corn prices break through the $4 mark, driven by the dollar's plunge and favorable weather
Dollar plunges, weather favorable, corn prices break through the $4 mark
On November 16, the Chicago Board of Trade (CBOT) corn market closed sharply higher, with the front-month contract settling above $4, mainly due to the sharp plunge in the dollar exchange rate.
As of the close, CBOT corn rose by between 9.75 cents and 11.75 cents, with the December contract up 11.75 cents to close at 402.25 cents per bushel; the March contract up 11.75 cents to close at 417.50 cents per bushel; and the May contract up 11.75 cents to close at 427.50 cents per bushel.
The corn market moved in exactly the same way as the neighboring soybean market. Corn prices surged in overnight trading, continued to strengthen once daytime trading began, and quickly broke through the overnight high. At midday the March corn contract pulled back somewhat, but in the afternoon it regained its upward momentum and set a new high before the close.
Although the corn market posted a large gain, corn underperformed wheat. On November 16, the wheat market was the strongest performer in the agricultural commodity market.
Analysts said that the surge in international crude oil futures, the sharp rise in gold and US stock markets, and the steep drop in the dollar exchange rate boosted sentiment across the agricultural commodity market, including corn.
Traders said that the rise in corn prices early in the session triggered stop-loss buying by brokerage firms, which in turn pushed the March contract above last week's high.
Weather forecasts show that more rain will fall in the western half of the Midwest around this Wednesday, which will further delay the corn harvest.
The weekly export inspection data were lackluster. According to the US Department of Agriculture, in the week ending November 12, US corn export inspections totaled 21.9 million bushels, below the 27.7 million bushels of the previous week and also below market expectations.
The cumulative export inspections so far this year have reached 16.2% of the USDA's total annual export forecast, compared with the five-year average of 20.6%.
For the remainder of the year, weekly export inspections need to reach 43 million bushels in order to achieve the USDA's full-year export forecast.
In other news, a CBOT spokeswoman said on November 16 that CBOT will announce this week adjustments to its corn futures contract, because of recent market concerns that vomitoxin levels in this year's corn crop are too high. She said that vomitoxin levels will be the first criterion for the corn contract, even though wheat has long had such vomitoxin.
Analysts said that this adjustment means a decline in the volume of corn delivered, which could be favorable for corn prices.
On November 16, corn market volume was estimated at 211,934 contracts.
As of the close, CBOT corn rose by between 9.75 cents and 11.75 cents, with the December contract up 11.75 cents to close at 402.25 cents per bushel; the March contract up 11.75 cents to close at 417.50 cents per bushel; and the May contract up 11.75 cents to close at 427.50 cents per bushel.
The corn market moved in exactly the same way as the neighboring soybean market. Corn prices surged in overnight trading, continued to strengthen once daytime trading began, and quickly broke through the overnight high. At midday the March corn contract pulled back somewhat, but in the afternoon it regained its upward momentum and set a new high before the close.
Although the corn market posted a large gain, corn underperformed wheat. On November 16, the wheat market was the strongest performer in the agricultural commodity market.
Analysts said that the surge in international crude oil futures, the sharp rise in gold and US stock markets, and the steep drop in the dollar exchange rate boosted sentiment across the agricultural commodity market, including corn.
Traders said that the rise in corn prices early in the session triggered stop-loss buying by brokerage firms, which in turn pushed the March contract above last week's high.
Weather forecasts show that more rain will fall in the western half of the Midwest around this Wednesday, which will further delay the corn harvest.
The weekly export inspection data were lackluster. According to the US Department of Agriculture, in the week ending November 12, US corn export inspections totaled 21.9 million bushels, below the 27.7 million bushels of the previous week and also below market expectations.
The cumulative export inspections so far this year have reached 16.2% of the USDA's total annual export forecast, compared with the five-year average of 20.6%.
For the remainder of the year, weekly export inspections need to reach 43 million bushels in order to achieve the USDA's full-year export forecast.
In other news, a CBOT spokeswoman said on November 16 that CBOT will announce this week adjustments to its corn futures contract, because of recent market concerns that vomitoxin levels in this year's corn crop are too high. She said that vomitoxin levels will be the first criterion for the corn contract, even though wheat has long had such vomitoxin.
Analysts said that this adjustment means a decline in the volume of corn delivered, which could be favorable for corn prices.
On November 16, corn market volume was estimated at 211,934 contracts.