<p>Outside markets have recently had a major impact corn prices. Currencies, energy prices, and Argentine policy changes have been in the spotlight over the past few months. The range-bound price action seen and expected in the corn market is a result of both outside market pressure and a comfortable supply and demand scenario both domestically and on the world level.&nbsp; In the December report, the USDA had only a few revisions. Production levels remained unchanged, but overall demand declined by 25 million bushels.&nbsp; The USDA increased feed demand from 5.175 billion bushels to 5.2 billion bushels and reduced U.S. corn exports by 50 million bushels.&nbsp; U.S. corn carryout increased to 1.785 billion bushels and carryout to use climbed over 13 percent.&nbsp; World corn production and demand were steady in the December report.&nbsp; The world corn carryout is at 211.85 mmt, up from 208.19 mmt a year ago.&nbsp;</p>
<p>The newly elected Argentine president, Mauricio Macri, is wasting little time implementing the changes he promised during his campaign. After taking office on Dec. 10, Macri completely eliminated the export taxes imposed on corn, wheat, and meats while reducing the soybean export tax from 35 to 30 percent on Dec. 14. Macri again made news on the Dec. 16 after he loosened controls on the peso, allowing it to float to market value. The actions taken in Argentina will result in a flood of farmer selling and increases in exports as well as an increase in production/exports in years to come.&nbsp;</p>
<p>South American weather and dryness concerns in Brazil are being closely watched but recent rains have left only about 20 percent of their growing region in need of moisture. The FOMC&rsquo;s December meeting brought with it the first interest rate hike (25 basis points) since 2006. This came as no surprise to market analysts but Chairwoman Yellen&rsquo;s comments on future plans to hike in 2016 should help support the U.S. dollar going forward, a cloud that continues to loom over commodity values.</p>
<p>* Comments in this column are market commentary and are not to be construed as market advice.</p>
<table border="0" cellspacing="0" cellpadding="0" width="342">
<colgroup><col width="150"></col> <col span="3" width="64"></col> </colgroup> 
<tbody>
<tr height="19">
<td class="xl67" width="150" height="19">Corn   Futures Prices</td>
<td width="64">&nbsp;</td>
<td width="64">&nbsp;</td>
<td width="64">&nbsp;</td>
</tr>
<tr height="19">
<td height="19">(March Futures, $)</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
</tr>
<tr height="19">
<td height="19">Date</td>
<td class="xl69">Close/bu.</td>
<td class="xl69">Close/ton</td>
<td>&nbsp;</td>
</tr>
<tr height="19">
<td class="xl68" height="19">December 18, 2015</td>
<td align="right">3.745</td>
<td align="right">133.75</td>
<td>&nbsp;</td>
</tr>
<tr height="19">
<td class="xl68" height="19">November 18, 2015</td>
<td align="right">3.6825</td>
<td align="right">131.52</td>
<td>&nbsp;</td>
</tr>
<tr height="19">
<td class="xl68" height="19">December 18, 2014</td>
<td align="right">4.11</td>
<td align="right">146.79</td>
<td>&nbsp;</td>
</tr>
</tbody>
</table>
<p>&nbsp;</p>

2015/12/Corn-sky_14513177256174_largethumb.jpg

2015/12/Corn-sky_14513177256174_thumb.jpg

2015/12/Corn-sky_14513177256174.jpg

Outside markets have recently had a major impact corn prices. Currencies, energy prices, and Argentine policy changes have been in the spotlight over the past few months. 

Commodities: Argentina, South America events impact corn market

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