Corn Market Sees Continued Decline as Futures Prices Fall

The corn market selloff persisted into Friday’s close, with front month contracts dropping between 11 and 12 cents. The new crop December contract fell by 6 ¾ cents. March futures ended the week down 37 ¾ cents, marking a 7.68% decline. CmdtyView reported a national average cash corn price of $4.23, down 11 cents from previous levels.

Crop Insurance Pricing Update

This year’s spring crop insurance price is established at $4.70, based on the average December corn closing price for February. This amount is four cents higher than the previous year. Consequently, the soy/corn ratio stands at 2.24, compared to the soybean crop insurance price, representing the lowest ratio since 2012.

Commodity Perspectives

Managed money speculators in corn futures and options decreased their substantial net long position during the week ending February 25 by 16,079 contracts. This reduction primarily stemmed from longs exiting, leading to a net long position of 337,454 contracts by Tuesday.

Additionally, President Trump’s proposed 25% tariffs on Mexico and Canada are still slated to take effect on March 4, following discussions this week.

Export Sales Performance

According to the latest weekly export sales data, total export commitments for the 2024/25 crop reached 48.664 million metric tons (MMT), representing 78% of the USDA’s full-year WASDE projection and slightly ahead of the 76% average pace. Accumulated export shipments presently total 26.567 MMT, which is 32% greater than last year and accounts for 43% of the USDA’s estimate, outpacing the 37% average shipping pace.

Market Closing Prices

March 25 Corn closed at $4.53 1/2, decreasing by 11 1/4 cents.

Nearby Cash was priced at $4.23, down 11 cents.

May 25 Corn settled at $4.69 1/2, declining by 11 1/2 cents.

December 25 Corn closed at $4.55, dropping 6 3/4 cents.

New Crop Cash was priced at $4.20, down 8 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 are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.