• Corn futures extended their decline as concerns over tariffs and retaliatory actions fueled additional long liquidation. May corn futures, at their session low, traded 76 cents below the most recent high from February 19.
• May futures are now testing key support at the 450 level — if this level fails to hold, the market could be vulnerable to a further drop toward the August low of 420, as sellers maintain control.
• U.S. tariffs of 25% for Canada and Mexico and an additional 10% tariff on Chinese goods were triggered last night as the potential for a trade war has increased. China countered with a 15% tariff on U.S. agriculture goods, including U.S. corn imports, and a 10% tariff on soybeans. In addition, China will stop receiving soybeans from three U.S. exporters. Mexico will announce a retaliatory plan on Sunday unless an agreement can be reached.
• The impact of tariffs could curb demand as U.S. goods become more expensive for affected countries. However, other markets not involved in the tariff dispute may benefit from lower U.S. prices, especially with the U.S. dollar trending downward.
• The market will be watching to see if demand picks up at these lower price levels. Demand has been the driver in the corn market, and old crop corn supplies remain tight until South American harvest later this spring into early summer.

Corn Rally Pauses
The corn market had been performing well in 2025, with steady demand keeping buyers engaged and driving prices to 16-month highs. Late in February, technical indicators reached overbought levels, and without new positive developments, prices began to pull back. Support for corn should hold near the 450 area. On the other hand, if buyers step back in, the next target would be 535, with more significant resistance at the spring 2023 lows near 550.