The U.S. Department of Agriculture's monthly World Agricultural Supply and Demand Estimates report revealed that demand for corn ticked higher than supply. While it's difficult to forecast what prices will do moving forward, it provides bullish traders with some hope.
Corn futures turned higher in Friday dealings, finding support from data showing that U.S. corn use, a proxy for demand, rose more than supply — prompting prices to give up early losses that had pulled them to their lowest level since 2020.
As the second largest economy continues to struggle from the aftermath of a real estate development crisis, China's demand for agricultural commodities should help keep soybean and corn prices afloat. The U.S. soybean market, in particular, could see increased soybean demand from China.
The BEA's core Personal Consumption Expenditures (PCE) Price Index for May shows that core inflation continues to be above the Federal Reserve's 2% long-term target at 2.6%. The May core Consumer Price Index (CPI) release was higher, at 3.4%.
An executive order by Brazil President Luiz Inacio Lula da Silva will limit the ability of the country's commodity exporters to take advantage of tax credits, thereby hurting their bottom lines. In turn, this is pushing soybean and corn prices higher.
Corn prices continue to struggle to find support in the current market environment domestically. But factors outside U.S. borders could help buoy prices.
The BEA's core Personal Consumption Expenditures (PCE) Price Index for April shows that core inflation continues to be above the Federal Reserve's 2% long-term target at 2.8%. The April core Consumer Price Index (CPI) release was higher, at 3.6%.