Pressure Mounts on Corn Market Ahead of Tariff Decision
February Tariff Deadline Looms as Prices Dip
On Thursday, the corn market experienced downward pressure as month-end selling took hold, coinciding with a looming February 1 tariff deadline. Futures for corn fell between 2 to 7 cents during the session. The national average cash corn price, according to cmdtyView, decreased by 7 cents, settling at $4.54 1/4.
Later in the afternoon, President Trump announced plans to implement a 25% tariff on Mexico and Canada starting Saturday. So far, neither country has publicly disclosed any retaliatory actions. Currently, there are 7.93 million metric tons (MMT) of corn committed to Mexico for the marketing year. The U.S. still maintains a freight cost advantage over many competitors. Notably, over 35% of the ethanol exports for 2024 have been shipped to Canada.
The USDA’s Export Sales report released this morning recorded total sales of 1.359 MMT for the week ending January 23. This number fell within the range of trade estimates of 0.85 to 1.8 MMT, reflecting an 18.2% decline from the previous week but a 12.6% increase compared to the same week last year. Japan emerged as the largest buyer, purchasing 493,100 MT, while Mexico bought 426,900 MT. There were net reductions of 482,500 MT reported for unknown destinations, primarily due to a change in shipping points. Additionally, 45,800 MT were noted for shipment in the 2025/26 season, all to Japan.
Mar 25 Corn closed at $4.90 1/4, down 6 3/4 cents.
Nearby Cash was $4.54 1/4, down 7 cents.
May 25 Corn closed at $5.01 1/2, down 6 cents.
Dec 25 Corn closed at $4.64 1/4, down 2 1/2 cents.
New Crop Cash was $4.34 1/2, down 3 1/2 cents.
On the date of publication, Austin Schroeder did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are intended for informational purposes only. For more details, please view the Barchart Disclosure Policy here.
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