Corn problems in Argentina, lower ocean freight rates, weakness in the U.S. dollar, fading bird flu concerns and declining Chinese corn exports have all converged to boost U.S. corn sales, according to The Brock Report.
Argentina's crop is now expected to be down 5-6 million metric tons from last year's record level of 19.7 million, which will curtail Argentine exports.
Freight rates on both the U.S. Pacific Northwest to Japan route and the Louisiana Gulf to Japan route are down more than 40% from a year ago. The U.S. Dollar Index is up about 6.9% from a year ago, but has dropped 3.5% off its November 2005 high.
Chinese exporters appear to have withdrawn from the market after selling only 2-3 million tons out of an additional 4 million ton export quota granted by the government in late 2005.