Argentinian weather energizes markets — ASAP Agri
Photo by: Latifundist.com
Weather conditions in Argentina have recently shaken up market activity as the year 2024 came to a close. High temperatures and a lack of new rainfall have fueled a sharp upward momentum for corn on the CBOT, Olivier Bouillet, the Head of Analytics & Insights at ASAP Agri, told Latifundist.com.
Over six consecutive days of gains, U.S. corn prices surged to a six-month high of 4.58 USD/bu — a level now being tested for the second time. During the first attempt, sellers dampened the enthusiasm by accelerating sales at these elevated levels. During the first attempt, sellers tempered the rally by accelerating sales at these elevated levels. Similarly, these weather-related factors have lifted soybean prices in Chicago above the 10 USD/bu mark.
As we step into 2025, agricultural commodity markets are expected to remain heavily influenced by evolving weather conditions in Argentina, where planting is still ongoing. As of December 27, BAGE reported that 80% of corn plantings had been completed nationwide, compared to 85% for soybeans.
Significant delays have been observed in Córdoba, Argentina’s leading corn-producing region, responsible for 35% of the national output, where only 56% of the area has been planted. This region has also experienced the least rainfall in recent weeks.
However, it is too early to call it a drought, as the seven-day forecast indicates a return of rain, though in limited quantities, the analyst marks.
Stay alert and keep monitoring Argentina, as its influence on Ukrainian prices is undeniable.
