Corn Futures Rise on Calls for Higher Soybean Futures and Weakened US Dollar

Strategic Insights -

Corn futures at the Chicago Board of Trade are called to open 2-4 cents a bushel higher on Tuesday, driven by higher soybean futures and further weakness in the US dollar. The market's typical seasonal pattern of building a premium for potential disruptions is also supporting corn prices. Analysts expect follow-through buying and spillover support from soybeans to prop up corn futures.

Key Takeaways:

  • Corn futures at the Chicago Board of Trade are expected to open 2-4 cents a bushel higher on Tuesday, driven by higher soybean futures and a weakened US dollar.
  • May corn was higher overnight, rising 3 3/4 cents to $2.24 3/4, while July corn was up 3 1/2 cents to $2.31 1/2.
  • Analyst Jason Roose from U.S. Commodities attributed the rise in corn prices to building a premium for potential weather-related disruptions and increased export demand due to a weak US dollar.
  • Commodity index fund-related buying is expected to resume, leading to gains in all CBOT agricultural pits.
  • South Korea has issued a buy tender for 52,500 metric tons of optional-origin corn and 36,000 tons of Chinese corn, which could support corn prices.
  • Japan's feed corn consumption fell slightly due to the outbreak of avian influenza, but an increase in wet-milling demand offset the decline.
  • Consumption and grain imports in Japan are expected to remain steady in the short term but decline over time due to a slow reduction in the overall livestock herd.

Statistics:

  • Corn futures are expected to open 2-4 cents a bushel higher on Tuesday.
  • May corn rose 3 3/4 cents to $2.24 3/4 overnight, while July corn was up 3 1/2 cents to $2.31 1/2.
  • The US dollar is weaker against major currencies, leading to increased export demand for corn.
  • Commodity index fund-related buying is expected to resume, leading to gains in all CBOT agricultural pits.
  • South Korea's buy tender is for 52,500 metric tons of optional-origin corn and 36,000 tons of Chinese corn.

Sources:

  • ODJ via COMTEX
  • Dow Jones Newswires
  • U.S. Commodities
  • US Department of Agriculture
  • COMTEX (http://www.comtexnews.com)