US Corn Down On Favourable Weather In Argentina

Corn futures closed lower on Tuesday. March futures were 1 1/4 cents lower at $5.87 1/4. The May contract was 2 cents lower at $5.95. December 2011 settled 5 3/4 cents lower at $5.34 1/4.

Weakness in the wheat market held corn prices in check.The strong pace of ethanol production so far this crop-year and an extension of the credit, even at the lower level, nearly ensures that the corn for ethanol estimate currently at 4.8 billion bushels is 50 million to 100 million bushels too low.

The winter storm and cold temperatures across the Midwest have slowed movement and is supportive to the corn basis.

Argentine weather is mixed. Weekend showers alleviated dryness in northern growing regions. Additional moisture is expected over the weekend, but accompanied by higher temperatures. So far just in time rainfall is aided the crop and maintaining yield potential.

source: indiainfoline