Corn price commentary: Futures extend losses as China-US meeting disappoints market participants

The front-month July corn contract on the CME dropped by 2.51%, or 11.6 cents per bushel, closing at $4.55 per bu. In the past five days, the July futures fell by 2.36%.

Market participants expected corn and soybean purchases to be announced during or after the meeting. However, there was no clear indication in that direction.

US President Donald Trump said China would buy “billions of dollars” of soybeans, while the US ​Trade Representative Jamieson Greer said the US ​expects China to buy “double-digit billions” worth of US farm goods over the next three years, without mentioning which products.

In the US, the CIF US Gulf barge premium for June loading fell by 1 cent per bu, to 86 cents per bu, while the July loading remained unchanged at 87 cents per bu, both over July futures.

The FOB US Gulf June and July loading premiums held steady at 94 cents per bu each, both over July futures.

The corn FOB US Pacific Northwest (PNW) premiums for June and July loading were unchanged at 120 cents per bu, and 128 cents per bu, both over July futures.

In Asia, the most-liquid July corn futures contract at the Dalian Commodity Exchange dropped by 8 yuan per tonne day on day to 2,363 yuan ($346) per tonne.

In Ukraine, corn prices were marginally higher for spot and June shipments on FOB basis, while local DAP terms remained unchanged, as well as new crop price ideas.

Offers were seen at $241-242 per tonne FOB Pivdennyi-Odesa-Chornomorsk (POC) for June shipment, while buying ideas were seen at $235-239 per tonne on the same terms.

Bids for the new crop corn were seen at $233-234 per tonne for November shipment, while sellers were showing $238-239 per tonne on the same terms.

On the delivered markets, selling ideas were seen at $260.50-262 per tonne CIF Marmara for June arrival, while buyers were showing interest in range $255-258 per tonne on the same terms.

Bids on internal DAP terms were seen at $230-232  per tonne DAP POC for spot and June delivery.

In South America, market movement was limited by the sharp decline in CME.  

The corn FOB Argentina premium for June loading rose by 5 cents per bu to 73 cents per bu, as did the July loading premiums, now assessed at 67 cents per bu, both over July futures.

According to Rosario Grain Exchange (BCR), the core region, the main agriculture area of Argentina, will harvest a record 20.3 million tonnes of corn in 2025/26, up by 35% compared with 15.5 million tonnes projected at the beginning of the crop year. Until now, the record 15.5 million tonnes was harvested in 2019/20.

Corn FOB Brazil premiums for June-loading in the port of Santosrose by 5 cents per bu to 125 cents per bu over July futures. New crop July premiums dropped by 4 cents per bu to 98 cents per bu over July futures.

Corn FOB Brazil Northern Arc premiums for June and July loading premiums were unchanged at 115 cents per bu and 97 cents per bu respectively, both over July futures.

To stay on top of it all and offset the financial risks that come with such high volatility, market players must keep up to date with the changing corn prices and drivers. Fastmarkets’ global and local insights-driven news and prices help you manage risk and make the right business decisions when trading in this constantly evolving commodity market. Find out more.