Corn Futures Decline Amid Tariff Tensions and Market Reactions

Corn futures are currently trading with losses of 4 to 6 cents across most contracts on Tuesday, recovering slightly from earlier lows. As long positions exit the market, uncertainty lingers over Mexico’s response to recent tariffs. Overnight, an additional 59 deliveries were recorded against March corn futures. CmdtyView reports that the national average cash corn price has decreased by 4.5 cents, now standing at $4.11 3/4.

Tariff Updates Affecting the Market

In a significant move, President Trump has imposed a 25% tariff on goods from Mexico and Canada. Mexico has set a deadline of Sunday to announce its response, which may include both tariff and non-tariff elements. Meanwhile, Canada has already implemented similar tariffs on $30 billion (Canadian) worth of U.S. goods. Following the announcement of an additional 10% tariff on Chinese imports, China retaliated with a 15% tariff on U.S. corn, although there are currently no restrictions on their corn imports from the U.S.

Grain Production and Usage Insights

The monthly Grain Crushing report from NASS indicates that 457.389 million bushels (mbu) of corn were utilized for ethanol production in January. This figure represents a 4.6% decrease from December’s adjusted total, which was 6.5 million bushels higher, yet stands 3.7% above production in the same month last year. Consequently, the total grind for the marketing year has reached 2.322 billion bushels (bbu), marking a 2.17% increase compared to the 2023/24 marketing year.

Current Market Prices

Mar 25 Corn is priced at $4.35 3/4, down 4 1/2 cents.

Nearby Cash corn is at $4.11 3/4, down 4 1/2 cents.

May 25 Corn is at $4.51 1/2, down 4 3/4 cents.

Dec 25 Corn has dropped to $4.46 1/4, down 5 cents.

New Crop Cash corn is at $4.11 1/1, down 4 1/4 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 here.

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