In the middle of last month, the USDA report was quite neutral and had no effect on corn prices on global commodity exchanges.
The current situation in South America significantly affects the price of corn for March 2013 and beyond, while prices for American corn until March 2013 are somewhat lower with the hope of stimulating interest in its export.
Long-term, an increase in prices of American corn is expected if the situation with South American crops does not change. Buyers will not be able to meet their needs with goods from South America and will seek to purchase American corn, directly stimulating price growth. Currently, only favorable weather conditions can influence a positive development of the situation.
In the soybean meal and soybean market in mid-December, after the conference in Dubai, it was concluded that no further price decline is expected. The processing of soybeans in America is going in a good direction, and high consumption and export to foreign markets are expected.
Bad weather conditions in South America are affecting price increases, especially for spring 2013, but currently, demand is maintaining price levels for the first quarter of next year.
During the Christmas holidays, American markets were open only half of the working hours on Christmas Eve, closed on Christmas Day, and resumed operations on December 26 at 9:30 local time.
Last week, the price of corn was somewhat lower, concluding on Friday with a drop of 12-14 USD/mt for the start of 2013.
Weather in Brazil has finally improved a bit, with rain soaking crops, especially in areas that were quite affected. Temperatures in Brazil remain high, but with the arrival of rain, a drop in temperature is expected.
American experts expect that after the weakening of corn prices, there will be a limit to further price declines. It is believed that the price of corn will recover slightly by the end of 2012 from the recent downward trend.
The soybean market was shaken by the shock of China withdrawing from purchasing large quantities, and experts estimate that the withdrawal is just a game that will end with new purchases by China but at significantly lower prices.
Currently, the weather in Brazil is promising, but conditions in Argentina are not equally good, and crops are crying out for sunshine after too much rain.
