The CBOT corn futures MAR-23 contract price was at 662.2 cents/56 bushel at the time of writing (22nd December), up 1.81% week-on-week (w-o-w). Corn prices were trading higher this week on technical buying, despite a slowing demand pace and concerns regarding the potential Argentinian corn crop. However, similar to the wheat market, the corn market is slowing down as the holiday period approaches.
This week corn prices were trading higher as corn in Argentina entered a yield-sensitive phase. The drought in Argentina will most likely cause significant losses unless there is a good amount of precipitation in January. Demand for US corn remained muted this week, which is a concern for the market. Also, Chinese economic problems, caused by Covid-19 lockdowns, could lead to less demand as South America has a much better crop this year and is well positioned to compete with the US for sales. China has carefully started to re-open the economy and allow people to move without quarantine in some cities, so demand could start to improve. South American prices are currently cheaper than those in the US.