6 January 2020
- Supply tightness contributed to the impressive market run in recent months, but our projections going forward suggest that the supply will increase. The divergence between rising supply and increasing price was only kept intact because of the exceptionally firm demand.
- Our proprietary metric for weekly corn Implied Demand continues to suggest that the positive demand shock is still very much in place. The market has responded in fashion – please refer to the Chart of the Week for further details.
- Our proprietary quantitative research platform for agricultural markets suggests that the importance of macro factors in the corn price formation has decreased substantially in the last 4 weeks. Global currency markets in general, and the value in Chinese yuan in particular play their role for demand creation.