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Grain Outlook: USDA s world corn estimates may be high | News

The following marketing analysis is for the week ending April 23. CORN — Let’s just take a moment and absorb this week’s impressive rally to prices not seen since July 2013! Old crop corn contracts locked up the 25-cent limit on April 22. The nearby contract closed above $6.00 for the first time since 2013. A combination of demand (high basis levels), cool temperatures in the United States (which will slow germination), stress on Brazil’s safrinha corn crop caused by a lack of moisture, and the willingness of money to flow into the market on the long side combined to punch prices to multi-year highs.

Agri-commodity outlook: We are still in a weather market

Cold weather in the US continued to dominate agri-commodity linked headlines this week. As the US remains cold and below zero, winter wheat remains a concern; spring wheat planting and development in the US and Canada will be delayed, reported the CRM Agri team. Furthermore, they noted a lack of rainfall in the US with minimal precipitation seen in long-term forecasts. That kind of weather pattern drove all Chicago and global grain markets higher again on Wednesday [April 21], they said.  Weather market, volatility  Summing up  developments for us, Peter Collier, market analyst, CRM Agri, remarked:  “We are currently in the middle of a strong spring weather market, with increased volatility due to current season tight markets. ​

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