U.S. and Argentina competition intensifies in global corn markets.
There are concerns in Chicago about Argentina, the world's second largest exporter of corn. This is due to the aggressive marketing that has been adopted by Argentine policy.
Competition between the United States and Argentina, the world's two largest corn exporters, could be far more fierce than usual according to industry insiders. The global recession is cutting the demand for livestock feed and limiting the market. The very cheap shipping available will make the global transportation of grain very attractive this season.
The government of Argentina has yet to authorize this year's corn sales; however, this has not prevented the large traders selling forward. The exports of corn from Argentina will be in the close to 8-9 million tons, allowing for a smaller than usual harvest, owing to the drought.