Corn Market Updates: Tariffs and Export Sales Impact Prices

Corn traders showed resilience on Thursday, recovering from previous overnight lows. The front months ended mixed, with the December contract closing down 1 ¼ cents. The CmdtyView national average cash corn price dipped by ¼ cent to settle at $4.27 1/4.

New Tariffs Announced, Impact on Major Buyers

Recently enacted “Liberation Day” tariffs exempted Mexico and Canada, allowing all USMCA-compliant goods to remain unaffected. However, tariffs were introduced for other significant U.S. corn buyers. Japan faces a 24% tariff, while South Korea will incur a 25% tariff. Colombia’s baseline tariff is set at 10%, effective April 9, with a 10% tariff beginning on April 5. So far, no retaliatory actions have been reported by any country.

Export Sales Figure Show Strong Demand

Export sales data released showed that during the week ending March 27, 2024/25 corn sales reached 1.173 million metric tons (MMT). This figure fell within trade estimates of 0.8 to 1.6 MMT and marked a 12.9% rise from the previous week, as well as a 23.8% increase from the same week last year. South Korea emerged as the top buyer, purchasing 339,400 MT, followed by Mexico at 226,500 MT and Japan at 168,500 MT. New crop sales reached 165,000 MT, all directed to Japan, exceeding expectations that ranged from 0 to 100,000 MT.

February Exports and Year-to-Date Totals

The Census data reported February corn exports at 6.03 MMT (equivalent to 237.5 million bushels), representing a 2.11% decline from January but a 12.33% increase compared to the previous year—marking it the third-largest February total on record. This brings the marketing year total to 1.207 billion bushels through the end of February. In addition, DDG exports decreased to 849,645 MT, while ethanol exports aligned closely with last year at 138.75 million gallons, down just 0.2%.

Price Summary for Corn Contracts

May 25 Corn closed at $4.57 1/2, down 1/4 cent.

Nearby Cash was $4.27 1/4, down 1/4 cent.

Jul 25 Corn closed at $4.65 1/2, up 1/4 cent.

Dec 25 Corn closed at $4.47 1/2, down 1 1/4 cents.

New Crop Cash was $4.10, down 1 3/4 cents.

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

The thoughts expressed herein reflect the author’s views and do not necessarily represent those of Nasdaq, Inc.