The US corn market continued to fall at the start of the week and is clearly under pressure. In Chicago, corn for March lost 2.50 US cents and was last quoted at 425.75 US cents/bushel. The May contract also showed weakness, dropping 2.25 US cents to 433.50 US cents/bushel. D
From a trader's perspective, several negative factors came together. The sharp fall in crude oil prices had a clearly negative impact on the energy sector and thus also on the corn market, while the firmer US dollar provided additional headwinds. The weekly export inspections reported exports of 1.136 million tons. This was down on the previous week and well below the previous year's level, even though cumulative shipments in the current marketing year are still well above the previous year. Japan remained the most important buyer, followed by Mexico and Colombia.
Internationally, the focus shifted to Brazil. Harvesting of the first maize crop is progressing more slowly than in the previous year, while sowing of the second crop is already further advanced. However, higher production estimates for both harvests underline the supply potential and are clearly bearish from a global perspective. Overall, the market is lacking a bullish impulse at the start of the week to halt the losses.
On Euronext, March lost €0.75 to €192.50/t.
