Corn Markets Under Pressure – Profit-Taking and Argentine Export Tax Cuts Weigh
Corn Markets Under Pressure – Profit-Taking and Argentine Export Tax Cuts Weigh
After recent gains, corn futures at the CBoT and Euronext posted losses on Monday. Profit-taking and Argentina's decision to cut export taxes led to negative price trends.CBoT: Corn Prices DeclineCorn futures at the Chicago Board of Trade (CBoT) closed weaker on Monday, pressured by profit-taking and Argentina's export tax reduction. The March 2025 contract fell by 4.25 ct/bu (-0.87%) to settle at 482.25 ct/bu (approximately 182 EUR/t). Other contracts also recorded losses:
Euronext: Losses Due to Stronger EuroCorn futures at Euronext also declined. The March 2025 contract fell by 2.25 EUR (-1.0%) to close at 213.75 EUR/t. Other contracts remained stable or recorded minor declines:
Market Drivers:
- Export Tax Cuts in Argentina:The Argentine government reduced the export tax on corn from 12% to 9.5%, increasing competition in global markets. This announcement weighed on prices after being evaluated by traders on Friday.
- Weather Conditions in South America:
- Argentina: Corn crops continue to suffer from heat and drought, despite forecasts of rain this week. High temperatures could limit the positive impact of rainfall.
- Brazil: Delays in soybean harvesting, caused by rainfall, are hindering the planting of the second corn crop. Safrinha corn accounts for approximately 75% of Brazil's total production. Late planting could reduce yields due to the onset of the dry season.
- Export Data from the US:
- According to the USDA, US corn export sales for the week ending January 16 totalled 1.66 million tons, at the upper end of expectations. This represents a 62% increase from the previous week. South Korea was the largest buyer with 462,100 tons purchased.
- Financial Investors’ Positions:CFTC data showed that financial investors increased their net-long positions in corn futures and options at the CBoT by 19,450 contracts to 311,678 contracts, the highest level in several weeks.
Outlook:The corn market remains volatile as traders balance short-term factors like profit-taking against long-term concerns about global supply. Weather developments in South America and export demand will continue to play a significant role in price movements in the coming days.
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