Chicago Board of Trade (CBOT) corn futures closed lower on Friday after surging to an 18-month high, as traders locked in profits and anticipated a bearish outlook from the U.S. Department of Agriculture (USDA) ahead of next week’s Agricultural Outlook Forum.
Market Factors Weigh on Corn Prices
After rallying to $5.13¼ per bushel—the highest level since August 2023—most-active corn futures retreated, closing down 7¾ cents at $5.05 per bushel. The contract had previously gained 12% since the start of the year, driven by strong U.S. export demand and competitive global pricing.
However, forecasts for widespread rainfall in Argentina’s farm belt and parts of Brazil next week pressured futures, with expectations of improved crop conditions in key South American growing regions.
Outlook for Increased U.S. Corn Plantings
Traders anticipate that the recent rally in corn prices will prompt U.S. farmers to expand plantings this spring, as corn appears more profitable than soybeans. Agricultural lender CoBank projected a 4% increase in U.S. corn acreage from 2024, reaching 94.55 million acres.
The USDA is set to release its official planting and yield projections at next week’s Agricultural Outlook Forum, with analysts widely expecting a bearish outlook. “Everyone knows it’s going to be somewhat bearish,” said Angie Setzer, partner at Consus Ag.
Mixed Performance in Other Grains
Soybean futures also weakened, while wheat futures posted gains. The shifting dynamics in grain markets reflect both global supply concerns and changing demand patterns, with traders closely monitoring upcoming USDA estimates for further direction.
