Corn Market: Slight Decline Ahead of the Weekend

The corn market showed little movement ahead of the weekend as traders at the Chicago Board of Trade (CBoT) awaited stronger export demand for U.S. corn.

Corn futures at the CBoT closed slightly lower. The new March contract dropped by 1.5 cents, settling at 442 cents per bushel, equivalent to 169.56 USD per ton or approximately 154.30 EUR per ton (at an exchange rate of 1 USD = 0.91 EUR). For the week, the March contract recorded a modest gain of 2 cents (0.5%).

At Euronext, the March contract declined by 1.25 EUR to 206.75 EUR per ton, although it remained 1 EUR (0.5%) higher than the previous week.

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Market Influences

• Currency Movements:Last week, the stronger U.S. dollar weighed on corn prices at the CBoT, while the weaker euro supported the European market.
• Disappointing Export Data:The USDA's weekly export sales figures released on Thursday fell short of expectations, exerting continued pressure on the market.
• U.S. Stock Reductions:Despite the weak weekly data, export demand has been unexpectedly strong since the start of the marketing year. This prompted the USDA to significantly reduce its forecast for U.S. ending stocks for 2024/25 by 10% in the WASDE Report published last Tuesday—a far larger adjustment than analysts had anticipated.

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Conclusion

The corn market continues to be influenced by export developments and currency fluctuations. The funds’ bullish positioning and the recent cuts in U.S. stock forecasts suggest ongoing interest in corn. Meanwhile, wheat and soybeans remain under pressure, reflecting differing dynamics across the grain markets.