NEGOTIATOR’S TAKE: Falling Corn prices will exert downward pressure on most of the food chain.
06.21.16 – Supply outlook improves in the U.S. and Brazil
Corn futures in Chicago fell by the most in three years and prices slumped in Sao Paulo state as the supply outlook improves in the U.S. and Brazil, the world’s top exporters.
U.S. rains through June 26 are seen aiding about half the crop in the Midwest, and the growing area is unlikely to encounter severe heat through mid-July, according to Joel Widenor, director of agricultural services at Commodity Weather Group LLC in Bethesda, Maryland. In Brazil, harvesting of the country’s winter crop is picking up pace and helping to ease a supply squeeze.
“The weather patterns are taking out some of the heat, and we’re also adding a little bit of moisture” in the U.S., Ryan Kelbrants, a market analyst at CHS Hedging LLC in Inver Grove Heights, Minnesota, said in a telephone interview. “Our crop scouts are reporting excellent conditions.”