The main suppliers in the global market for corn are
flooding the balance sheet with their harvest, and
investment funds acted accordingly. Local prices are
not exempt from bearish pressure in Argentina.
Meanwhile, rainfalls during the sowing period caused
the switch of some lots to soy, which is also
presenting attractive future harvest prices.
Local prices are struggling to find any signals that point
to a possible trend reversal. The main bearish fundamentals
The “corn tsunami” from Brazil, which is aggressive
flooding the global market.
Bearish pressure from the US harvest in a market
already overflowing with corn.
Funds deepening their short positions.
Regarding local fundamentals, corn area growth in Argentina
reaches 400,000 hectares and sowing progress stands at 32%.
However, the combination between the rise in soybean prices
and rainfalls during sowing periods caused some farmers to
switch lots to soybean. Furthermore, the probability of 60%
that La Niña happened exposes corn yields to further
Rosario Arbitration Chamber Reference Corn prices stand at
ARS 2,340 per ton (USD 134.6 per ton) which is 31 dollars
below last year’s level.
During the past week, cash bids for corn were absent from
the local cash market. Buyers offered prices in the ARS
2,300 to ARS 2,350 per ton range for corn for delivery
during November, according to SIOGRANOS. In the case of new
crop corn, bids started around USD 150 per ton.