US corn pause is expected; agricultural markets are in limbo

Published 2024년 12월 18일

Tridge summary

The article highlights the fluctuation in the global agricultural market, with a focus on yellow grain, specifically corn and wheat prices in Chicago and Europe. The rise in corn prices is attributed to USDA forecasts of increased ethanol consumption and exports, though this trend may be threatened by competition from Latin America. The future of American ethanol policy remains uncertain under President Trump's administration. Additionally, the article discusses the impact of Brazil's expected increase in production and the potential effects of winter on market rebound. Furthermore, it touches on the decline in American soybeans, the intra-European demand and significant purchase by Saudi Arabia supporting wheat prices, and the uncertainty caused by China's expected reduction in purchases in 2024.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The price of yellow grain rose Tuesday to its highest level in Chicago since June 20, while in Europe it held steady. On Euronext, it was around 207 euros per tonne on Wednesday (209 euros a week earlier). This American recovery, fueled by the Department of Agriculture (USDA) forecasts of an increase in ethanol consumption and exports, seems however to be running out of steam, particularly in the face of expected competition from Latin American production. "Corn is being dragged down by soybeans and wheat, with, in addition, the prospect of an even more abundant harvest than expected in Brazil, which has ideal weather," notes Dax Wedemeyer, analyst for the brokerage house US Commodities. The Brazilian public institute Conab is forecasting a 3.4% increase in production over one year, as the harvest approaches. With the return of Donald Trump, the unknown also remains on the future American policy on ethanol, biofuels currently absorbing nearly half of corn production in the United ...

Source: TerreNet