Corn futures fell further below $4.10 per bushel, hitting their lowest level since early September 2025, after a tentative US–Iran peace agreement sparked a sharp drop in oil prices. Crude slumped following statements from US President Donald Trump and Iran’s deputy foreign minister that a deal had been reached to halt hostilities and restore shipping through the Strait of Hormuz.
Agricultural commodities typically move in tandem with crude oil because of their role in biofuel production, so the decline in energy prices pressured grain and oilseed markets. Additional headwinds came from favourable US crop weather and improved production prospects in South America.
Last week, the USDA raised its corn output forecasts for Argentina and Brazil to 61 million metric tons and 138 million tons, respectively. The agency also increased its projection for global corn ending stocks in 2026/27 to a level above market expectations. Meanwhile, subdued Chinese demand for US agricultural exports has further dampened sentiment, undercutting earlier hopes for large-scale Chinese purchases.
