June 18, 2010

US corn futures rise on strong export demand

US corn futures closed higher on Thursday (June 17) on stronger export demands as July futures were 1 1/4 cents higher at US$3.57 ½; while December contract was 1 cent higher at US$3.78 1/4.

Weekly export sales were reported at 42.9 million bushels this year and 5.4 million bushels for 2010-11. Shipments were also solid at 42.9 million bushels.

Total export commitments are up 11% from a year ago well above USDA's forecast for a 5% increase. Confirmed export sales to China for the current marketing year total 715,000 tonnes or 28 million bushels.

Buenos Aires Grain Exchange raised their production estimate for Argentina's corn crop by 0.3 million tonnes to 22.5 million.

Additionally, the impact of the outside markets was mixed. Crude oil was higher, but the dollar index was lower. The other grains provided less decisive leadership on Thursday with soy mixed and wheat only slightly higher.

Meanwhile, China, the world's second-largest corn consumer, may buy more than one million tonnes in the next 18 months, in addition to purchases made this year, as economic growth boosts demand, the US Grains Council said.

US exporters reported sales of 120,000 tonnes of corn to China for delivery in the marketing year that ends on August 31, the USDA said June 14. That is in addition to the 595,000 tonnes in reported purchases by China as of May 20, according to USDA data.