Corn futures hit 16-month high - CBOT
Prices climb above $5 a bushel
19 February 2025
2 minute read
By: Chicago Board of Trade (CBOT) corn futures reached a 16-month high above $5 a bushel on Tuesday on robust US export demand and expectations that inventories may tighten, Reuters reported, citing analysts.
Wheat futures touched their highest price since October, while soybean futures also advanced on spillover support from corn's gains.
Rising crop prices benefit farmers after markets slumped to 2020 lows last year due to oversupply.
Traders have been watching to see whether the most active corn contract would exceed $5, a key price level, and said farmers will likely increase sales of their crops to take advantage of the rally.
Strong demand for US corn has not slowed following price gains this winter, said Arlan Suderman, chief commodities economist for brokerage StoneX.
The US Department of Agriculture reported that 1.6 million metric tons of corn were inspected for export last week, beating analysts' estimates for 975,000 to 1.4 million metric tons.
Additional support for prices came from relief that US President Donald Trump has not yet unleashed tariffs that are disrupting agricultural trade, analysts said. Negotiations over trade tariffs could even lead some importers to buy more US grain and soy, they said.
"The tariff push is going to be more like, 'Buy America and buy more grain," said Don Roose, president of brokerage US Commodities.
CBOT March corn futures closed 5-3/4 cents higher at $5.02 per bushel and reached the highest price for a most-active contract since October 2023.
CBOT March wheat ended up 4-3/4 cents at $6.04-3/4 a bushel, while March soybeans rose 2-1/2 cents to $10.38-1/2 a bushel.
Corn supplies are expected to tighten in the coming months but soybeans are projected to be plentiful.
US soy processors crushed their second-largest volume of soybeans ever in January, according to National Oilseed Processors Association data.
In Argentina, a major soy and corn supplier, weekend rains helped to prevent further losses to drought-hit crops, the Rosario grains exchange said.
Traders are also watching weather conditions in Russia and the US, where cold temperatures could damage wheat crops, analysts said.
