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Lower-than-Consensus Weekly Export Sales Pushed Corn Prices Down

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Corn prices fell

Corn futures on the CBOT (Chicago Board of Trade), for March delivery, fell by 0.07% and settled at $3.58 per bushel on December 31, 2015. Corn futures prices fell due to speculation of lower export demand. ETFs like the Teucrium Corn Fund (CORN) followed the CBOT and fell by 0.28% on December 31, 2015.

The U.S. Department of Agriculture’s Weekly Export Sales report released on December 31, 2015, for the week ending on December 24, 2015. The corn net weekly export sales were 705,165 metric tons. This was lower than the consensus projections. It was 3% lower compared to the last four-week average and 12% lowest than the previous week. The rise in the exports was from Mexico, Japan, Peru, Colombia, and Nicaragua. The reductions in exports were from Trinidad. Lower-than-projected weekly export sales hurt the US corn demand and pushed futures prices down on December 31, 2015.

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The US Coast Guard closed a 70-mile passage on the Mississippi River near Chester, Illinois, due to high water concerns. Analysts think that it wouldn’t be favorable for corn exports because it would delay the shipments. The expectation of lower export sales in the next week kept pressure on the corn prices on December 31, 2015.

The corn planting in Argentina is 77% complete, according to an Allendale report. Last year, the crop was 1% higher at 78% during the period. Delayed corn planting could negatively affect the output and supply from Argentina. The speculation of Argentina’s delayed corn supply supported US corn exports on December 31, 2015.

Stock discussion

The fall in corn negatively impacts producing and trading businesses’ share value. Companies like Archer Daniels Midland (ADM), ConAgra Foods (CAG), Tyson Foods (TSN), and Ingredion (INGR) fell on December 31, 2015, by 0.54%, 1.0%, 0.86%, and 2.3%, respectively. In contrast, ETFs like the PowerShares DB Agriculture Fund (DBA) rose by 0.15% on December 31, 2015.

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