Corn Market Faces Significant Losses as Tariff Threat Looms

The corn market is experiencing notable double-digit losses on Wednesday, with contracts falling 10 to 12 cents for nearby futures. The new crop December contract is down by 7 cents. According to CmdtyView, the national average Cash Corn price has decreased by 11 1/2 cents, now sitting at $4.20 1/2.

Potential Retaliatory Tariffs Impacting Market Sentiment

Canada’s energy minister has indicated that potential retaliatory tariffs on U.S. goods might affect ethanol in their second round of duties. These tariffs are possible if the U.S. implements delayed USMCA tariffs on April 2. The European Union, responding to President Trump’s steel and aluminum tariffs, plans to initiate retaliatory tariffs in early April, which could include corn. Although the EU has limited U.S. corn importation, the U.S. has already shipped 2.47 million metric tons of corn to the EU this marketing year.

Ethanol Production and Stocks Update

The latest EIA report shows ethanol production has decreased by 31,000 barrels per day during the week ending March 7, totaling 1.062 million barrels per day. Ethanol stocks rose by 87,000 barrels to reach 27.376 million barrels, with stocks in the Midwest hitting a record 11.537 million barrels. Meanwhile, refiner inputs of ethanol fell by 13,000 barrels per day to 877,000, as gasoline product supplied (implied use) reached its highest level since early November at 9.182 million barrels per day.

Export Sales Anticipated Ahead of Thursday’s Report

As traders prepare for the Thursday morning Export Sales report, they are expecting old crop corn bookings to range between 0.75 and 1.4 million metric tons for the week ending March 6. New crop sales are forecasted to be between 0 and 100,000 metric tons.

Current Corn Prices

Mar 25 Corn is priced at $4.46, down 10 1/2 cents.

Nearby Cash is at $4.20 1/2, a decrease of 11 1/2 cents.

May 25 Corn is currently at $4.58 1/2, down 11 3/4 cents.

Dec 25 Corn is recorded at $4.47 1/2, down 7 cents.

New Crop Cash is priced at $4.10 1/2, which is an 8-cent decrease.

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

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