In the overall weak market environment for agricultural goods and the red sign for the wheat future, corn contracts on Euronext/Matif also went south. The front month lost EUR 1/t and closed at EUR 297/t. With yesterday's closing prices, corn is more expensive than the corresponding comparison contract for wheat. In Argentina, observers continue to reduce the prospects for the corn harvest. The USDA had recently expected 45 million tons, the private consulting firm Cordnonnier now estimated a harvest of 43 million tons. The country's grain exchanges are even lower with their forecasts. US ethanol production has continued to increase. On average, 14,000 barrels more were produced per day in the last week. Ethanol inventories have increased slightly. However, positive indications for crude oil yesterday could not stop the price corrections. The front month lost 6 US cents/bu and closed the most traded March contract at a converted rate of 248.00 euros/t. Slight support came from the announcement of an export sale of 213,000 tons of corn to Mexico. Today the USDA will release weekly export sales for the week ended February 9th. Pre-market, the corn contracts show a slight red sign.
Source
VR AGRICULTURAL
