Chicago corn futures experienced a notable increase on Friday, positioning themselves for the largest weekly gain since May 2023. This surge followed U.S. President Donald Trump’s decision to pause certain tariff increases, compounded by the U.S. Department of Agriculture (USDA) tightening its supply outlook. Meanwhile, soybean futures remained relatively stable but were still projected to finish the week over 5% higher due to delays in U.S. tariffs and European Union counter-tariffs that alleviated fears regarding U.S. crop exports.
Additionally, a significantly weaker U.S. dollar contributed to making American agricultural products more competitive on the global market. Wheat futures also saw an upward trajectory despite the USDA’s increase in U.S. wheat ending stocks. At this point, soybeans and wheat are trading near levels recorded before Trump’s recent tariff announcements, while corn has gained traction.
The most active corn contract on the Chicago Board of Trade (CBOT) was up 0.4% at $4.84-3/4 per bushel as of 0538 GMT, marking a 5.3% increase for the week. This gain represents the highest weekly rise since May 2023. Meanwhile, soybeans hovered around $10.28-3/4 per bushel, also reflecting a 5.3% weekly increase, the steepest since September 2024.
Wheat climbed 0.6% to $5.41-1/4 per bushel, resulting in a 2.3% week-over-week increase. The U.S. dollar index has now fallen to its lowest level since July 2023. The USDA adjusted its forecast for U.S. corn and soybean supplies, reducing the estimated 2024-25 U.S. corn ending stocks to 1.47 billion bushels from 1.54 billion, and U.S. soybean stocks to 375 million bushels from 380 million.
Both estimates were lower than what most analysts had anticipated. Although the USDA also lowered its projection for global corn stocks, it raised the estimate for global soybean stocks. Nonetheless, a major trading firm source in Australia expressed skepticism about sustained growth for corn and soybeans due to looming tariff risks and weakened demand forecasts, particularly from China, coupled with expectations of substantial crop harvests in the U.S. later this year.