Corn Futures Surge as Export Numbers Impress and Tariff Talks Shift
Positive Trends in Corn Prices and Exports
Corn futures saw gains on Tuesday, with most contracts rising between 3 to 5 cents. The national average Cash Corn price from cmdtyView increased by 4 1/2 cents, now standing at $4.53 1/2.
Strong Export Performance
According to Export Inspections data, corn shipments amounted to 1.541 million metric tons (60.68 million bushels) for the week that ended on January 16. This figure is over double the volume from the same week last year and 6.88% higher than the previous week. Japan ranked as the top destination, receiving 405,010 metric tons, while Mexico imported 347,525 metric tons and South Korea 274,155 metric tons. Cumulatively, marketing year shipments have reached 19.25 million metric tons (757.8 million bushels), reflecting a 30.54% increase compared to last year.
Policy Changes Impacting Tariffs
On Monday, President Trump indicated a shift towards a less aggressive trade policy. He announced a delay in the implementation of tariffs while reviewing existing agreements with China, Canada, and Mexico, even suggesting a potential February 1 start date for 25% tariffs on these nations may not happen.
Speculative Moves in the Market
The weekly CFTC Commitment of Traders report revealed that speculative traders increased their net long position in corn futures and options by 38,882 contracts as of January 14. This brought their total net long position to 292,228 contracts, the highest level since May 2022. Conversely, commercial traders boosted their net short positions by 52,432 contracts, totaling 540,764 contracts, the largest since June 2022.
Brazil’s Corn Harvest Progress
In Brazil, AgRural reports that 4.1% of the first corn crop has been harvested in the Center-South region as of last Thursday, while the second crop is noted to be 0.3% planted.
Current Corn Futures Prices
March 25 Corn is priced at $4.88 3/4, up 4 1/2 cents.
Nearby Cash is priced at $4.53 1/2, up 4 1/2 cents.
May 25 Corn is at $4.98, up 5 cents.
December 25 Corn is at $4.59, up 3 cents.
New Crop Cash is at $4.30 1/2, up 2 1/2 cents.
On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
