Corn Prices Decline Ahead of Tariffs on Mexico and Canada
Corn futures closed lower on Monday as traders continued to exit their long positions ahead of the March 4 tariff implementation date. Contracts fell by 13 to 14 cents in the nearby months, with new corn down 3 ¾ cents. CmdtyView reported a national average cash corn price of $4.15, down 8 cents. President Trump has reaffirmed the administration’s commitment to impose tariffs on both Mexico and Canada, but no retaliatory actions have yet emerged from these countries prior to the possible tariff start date.
In a related development, the USDA announced a private export sale of 114,000 metric tons of corn to Mexico for the 2024/25 marketing year this morning.
Commodity Bulletin: From crude oil to coffee, this FREE newsletter is designed for industry professionals and novices alike.
The latest monthly Grain Crushing report from the National Agricultural Statistics Service (NASS) revealed that 457.389 million bushels of corn were utilized for ethanol production in January. This marks a 4.6% decrease from December’s revised total, which was 6.5 million bushels higher, but still a 3.7% increase compared to January of the previous year. Consequently, the marketing year total for ethanol production stands at 2.322 billion bushels, reflecting a 2.17% increase over the 2023/24 marketing year.
This morning’s Export Inspections report indicated that 1.351 million metric tons (53.2 million bushels) of corn were shipped during the week ending February 27. This total is 15.86% greater than the previous year and 17.91% higher than the same week last year. Mexico remained the largest destination, with shipments of 413,637 metric tons, followed by Japan with 272,570 metric tons and Spain with 138,421 metric tons. Cumulatively, marketing year exports now amount to 27.257 million metric tons (1.073 billion bushels), a substantial 31.69% increase from this time last year.
As of now, Mar 25 Corn closed at $4.40 1/4, lower by 13 1/4 cents.
Nearby Cash was $4.15, decreasing by 8 cents.
May 25 Corn closed at $4.56 1/4, down 13 1/4 cents.
Dec 25 Corn closed at $4.51 1/4, falling by 3 3/4 cents.
New Crop Cash was at $4.17 3/4, down 3 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 for informational purposes only. For more information, please view the Barchart Disclosure Policy here.
More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
