Pressure Mounts on Corn Futures as Markets React to Tariff News

Corn futures faced downward pressure during Tuesday’s trading session, with most contracts declining by 3 cents. According to CmdtyView, the national average Cash Corn price fell by 2 3/4 cents to $4.47.

Upcoming EIA Data and Ethanol Production Concerns

On Wednesday morning, the EIA will release updated data. Analysts anticipate ethanol production to remain steady or dip slightly compared to previous weeks. The situation is concerning due to weakening ethanol margins and increasing stock levels.

Trump’s Tariff Announcement and Market Reactions

President Trump confirmed the March 4 start date for tariffs on Mexico and Canada, a move that many had viewed as a negotiation tactic. However, this has led some investors, especially those with long positions, to reduce their exposure to potential market risks.

Brazil’s Corn Crop Progress and Export Estimates

As for global corn production, CONAB reported that Brazil’s second corn crop is currently 53.6% planted as of Sunday, lagging behind last year’s pace of 59%. Meanwhile, ANEC estimates that Brazil’s corn exports for February will reach 1.29 million metric tons, a slight increase from earlier forecasts.

Market Close Summary

Mar 25 Corn closed at $4.79 3/4, down 2 3/4 cents.

Nearby Cash was $4.47, down 2 3/4 cents.

May 25 Corn closed at $4.94 1/4, down 2 3/4 cents.

Dec 25 Corn closed at $4.70, down 3/4 cent.

New Crop Cash was priced at $4.38 5/8, decreasing by 1 cent.

On the date of publication, Austin Schroeder did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information provided is for informational purposes only. For more details, please view the Barchart Disclosure Policy here.

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