Highlights
On Wednesday, President Trump postponed for 30 days the 25% tariff on Canadian and Mexican imports scheduled to be applied on 4 March. Yesterday morning, he cancelled the postponement and stated the 25% tariff would go into effect on March 4. He also stated tariffs will increase 10% tomorrow on goods coming from China.
The market’s fear is Mexico, being the number one buyer of U.S. corn, will slap a tariff on U.S. corn imports. That is certainly possible, but Mexico has a lot of corn already bought to import and the market thinks Mexico needs to buy quite a bit more corn and possibly China and the EU need to buy quite a bit of American corn.
Other negatives for corn were:
USDA projected yesterday morning 2025 corn acres will be 400,000 more than expected, which, for a February estimate justifies maybe a 2¢ decline for 15 minutes and then back to technical more significant fundamental news.
Weekly export corn sales were below the low end of the range of expectations.