Competition between the world's three largest exporters of corn will lower the cost of the crop..
The US ranks first in export of corn in the world. Followed by Argentina and Brazil. Argentina usually offers the harvested corn from March to July. In the current year, export will continue in August as well due to floods in the country's fields and roads.
In anticipation of a large supply of corn, traders open short positions and sell corn in the hope that later in the year they will buy it back at a lower price.
According to the US Futures Trading Commission, as of May 30th 2017, funds hold twice as many short positions for corn than long. The net volume of short positions is the largest from March 2016 until now.
The advantage of Argentina is that it starts to offer corn earlier than its competitors. This year, however, only 40% of the new crop were sold, which is by 20% less than last year.
In August, Brazil usually offers its corn most actively, and in September this is done by the United States.