Positive China-US trade talks supports CBOT corn futures: sources


China's continued draw on its corn stocks and its announcement late Thursday that it would end anti-dumping and countervailing duty measures against US sorghum have given hope it will return to US corn, sending futures to their highest levels in the last 23 months on Friday, sources said.

The front-month CBOT corn futures contract rose 7.25 cents Friday to $4.0250/bu, its highest level since June 20, 2016, when it settled at $4.2125/bu, according to S&P Global Platts data.

Sorghum is a small market compares to corn, but China's trade peace offering brought hopes of better exports in US corn and other commodities, sources added.

"The market wants to move higher," a market participant said. "It just needs an excuse."

In addition, CBOT corn futures got support from expectations of better US corn exports as the Brazilian corn second-crop is having some dry weather challenges, sources added.

Analysts estimated Brazilian second-crop corn production at 48.8 million mt, 16% lower from its April estimate and 27% lower from 2017 production, a source said.

Corn is the primary feedstock for ethanol production in the US and is the main competitor for dried distillers grains.


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