On Friday, corn prices improved due to South America’s dry weather, boosting costs for the market for the past weeks.
US corn futures for March delivery increased by 0.13% to $676.40 per bushel on February 17’s Asian afternoon session.
Recently, the product’s prices have been increasing to the $6.00 range amid the impact of South American weather.
Analysts said a strong resistance point stood at $6.80 to $6.90. Likewise, they forecasted a lot of rain over the weekend between February 11 and 12. It hit some dry areas but is insufficient for primary corn production.
Also, they said it would remain dry for the following week, giving an advantage to the market.
In addition, experts will keep Brazil on watch since they got their second crop planting done. Unfortunately, they have been getting numerous weather delays due to recent rains, appearing to continue this week.
Furthermore, analysts noted that current conditions are still beneficial to corn planting. Besides, fertilizer prices have become more affordable.
They noted that the grain acres are in favor of next year as they see its new crop return to $6.00. In the meantime, it is an excellent time to get caught up with the 2023 sales in crops.
Brazilian Corn Planting Delayed
The top soybean exporter, Brazil, is now on the edge of becoming the world’s leading corn supplier. However, they did not get the ideal start that they hoped to be a bumper crop.
Additionally, some delays held back the plantation of the heavily exported second produce. On Monday, only 12.00% of the state’s output was sown, lower than the previous year’s 23.00% on average.
Moreover, Brazil’s leading grower, Mato Grosso, planted 34.00% of its grain on Friday. A plunge compared to 55.00% last year.
The center-west’s most prominent risk of late planting is the arrival of the dry season as early as April. In 2018, dry pockets limited its corn yield.