Corn Markets Show Mixed Trends Amid Profit-Taking and South American Weather Concerns

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Corn Markets Show Mixed Trends Amid Profit-Taking and South American Weather Concerns

Corn futures displayed mixed trends on Friday as profit-taking and weather updates from South America influenced prices. The March contract at CBOT closed lower by 3.00 ct to 486.75 ct/bu, while the March contract at Euronext declined slightly by 0.25 EUR to 215.75 EUR/t.


CBOT: Profit-Taking Pressures Prices
Corn futures at the Chicago Board of Trade (CBOT) ended the week under slight pressure due to profit-taking after recent gains. The March 2025 contract dropped by 3.00 ct/bu (-0.61%) to settle at 486.75 ct/bu (approximately 184 EUR/t). Other contracts also posted modest declines:

Contract Closing Price (ct/bu) Change %
March 25 486.75 -3.00 -0.61 %
May 25 496.50 -2.75 -0.55 %
July 25 498.50 -2.25 -0.45 %
September 25 465.25 -1.75 -0.37 %
December 25 462.50 -1.75 -0.38 %

Euronext: Corn Futures Slightly Lower
Corn futures at Euronext were relatively stable, with only slight declines in the March 2025 contract, which closed at 215.75 EUR/t, down 0.25 EUR (-0.12%). Other contracts remained unchanged:

Mintec Global
Contract Closing Price (EUR/t) Change %
March 25 215.75 -0.25 -0.12 %
June 25 220.75 0.00 0.00 %
August 25 225.00 0.00 0.00 %
November 25 217.00 0.00 0.00 %

Key Market Drivers:

  1. Profit-Taking Following Recent Highs:
    After reaching the highest levels in over a year, both CBOT and Euronext markets saw some consolidation as traders booked profits.
  2. Argentina’s Weather Challenges Persist:
    • Argentina continues to suffer from heat and drought, prompting the Buenos Aires Grain Exchange to cut its corn production forecast by 1 million tons to 49 million tons, compared to the USDA’s projection of 51 million tons.
    • Although some rain is expected in the coming week, high temperatures may limit its impact on crop conditions.
  3. Delays in Brazil’s Corn Planting:
    • Heavy rains in key soybean-growing regions are delaying the harvest, which is crucial for the timely planting of Safrinha corn.
    • The delayed planting increases the risk of reduced yields, as late-planted corn may miss the optimal window for rain during Brazil’s dry season.
  4. US Ethanol and Export Data:
    • Ethanol production in the U.S. dropped slightly to 1.099 million barrels/day, while ethanol inventories rose to 25.874 million barrels, an increase of 866,000 barrels.
    • Traders are awaiting weekly export sales data, with expectations ranging from 700,000 to 1.7 million tons for 2024/25.

Outlook:
Corn markets are expected to remain volatile as traders weigh global supply uncertainties and demand signals. South American weather will continue to be a significant factor, especially as Brazil faces planting delays and Argentina struggles with drought conditions. Profit-taking may limit further price gains in the short term, but strong export demand could provide support.