Corn futures declined to around $4.50 per bushel, a five-week low, as uncertainty over global trade and geopolitical developments pressured prices. Expectations of a potential US–Iran peace agreement that could reopen the Strait of Hormuz and restore shipments of fuel and fertilizers essential for crop production are viewed as supportive for agricultural supply, with the potential to increase global grain output. At the same time, crude oil prices rebounded on reports of new US strikes in southern Iran, underpinning biofuel-related demand.
Further downward pressure on corn came from renewed doubts surrounding a US–China trade deal. While the US administration stated that China had agreed to purchase at least $17 billion in US agricultural products annually through 2028, following talks between Trump and Xi in Beijing, China’s Commerce Ministry characterized the arrangement only as a “guiding target” to expand trade, without endorsing the specific figure. USDA data suggest that any rebound in Chinese corn imports would represent a significant shift after nearly two years of muted buying.
