April 24, 2008

US corn, soy higher on Argentine worries and weather uncertainties

US corn and soy closed higher this week due to fears of planting delays on uncertain weather and the stalemate of Argentine strike negotiations.

So far, heavy rains are forecast to reach 75-90 percent of the Midwest 4-5 days out and these rains continue to be below expectations.

If the pattern continues, the US Midwest should be able to catch up and surpass last years' planting progress, observers said.

The USDA said Wednesday that they expect roughly 4 million additional corn acres will be planted since their March survey was taken.

Although a lot of this will depend on weather, a 90 million acre estimate in the June report could break the corn market significantly from these levels.

Meanwhile, soy was also higher as Argentineans have reached a stalemate.

More buyers are expected for US soy as Argentina failed to reach concrete settlement of the latest issue on tariffs.