Over the week, corn future prices for March delivery fell almost 8%, after predicted rainfall in parts of Argentina towards the end of the week helped ease stress on crops affected by drought in recent weeks (this initially saw corn jump 3% the previous week).
The weather forecast initially saw corn prices fall to a one-month low yesterday, however the relief was short-lived and the price rallied on speculation that the rains forecast may fail to reverse crop damage in the second-largest shipper. While Argentina’s corn crop will decline because of a drought, reports from the United Nations (UN) suggest that the US may expand planting and make up for the potential damage, which helped to curb any significant gains in the price of corn.
The UN’s Food & Agriculture Organization department went on to further say that the crop may drop to 21.4 million metric tons in the year starting in March, from a record 23 million tons, showing that Argentina’s weather disaster will have an impact upon global output.
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