Thursday sees corn's closing with gains, bolstered by a robust export business.
The U.S. corn market is currently experiencing a bearish trend, with prices falling to their lowest levels since 2020. This decline is primarily due to ideal growing weather, high yield forecasts, and ample supplies, which have created stiff competition from Brazil and Ukraine [1][3][4].
Despite the downward price pressure, recent export sales data for early August 2025, show an exceptionally strong performance. The total sales amounted to approximately 3.33 million tonnes (Mt)—with 171,000 tonnes for old crop and 3.16 Mt for new crop—exceeding forecasts due to competitive US Gulf and Pacific Northwest values [2].
Key buyers of U.S. corn exports include South Korea and Mexico. Private exporters reported recent sales including 5.5 million bushels to South Korea and 4 million bushels to Mexico, both for delivery in the 2025-26 marketing year starting September 1 [4]. South Korea also made a separate purchase of about 2.6 million bushels of animal feed corn, likely sourced from the US or South America [4].
The USDA reported private export sales of 106,680 MT to Mexico and 105,000 MT to Guatemala, both for the 2025/26 shipment [6]. Mexico was the buyer of 408,000 MT in new crop corn sales, and 208,400 MT in old crop corn sales [7]. South Korea bought 402,000 MT in new crop corn sales [7].
Interestingly, the buyer of 1.28 MMT in new crop corn sales remains unknown, while Colombia bought 148,900 MT in old crop corn sales [7]. There were also reductions of 491,700 MT in old crop corn sales, which were mostly switched to other destinations [7].
In summary, the U.S. corn market is currently oversupplied, leading to downward price pressure. However, the strong demand for U.S. corn, driven by competitive pricing and contracting activity, is evident in the strong export sales [1][2][3][4][5]. This trend is expected to continue, making the U.S. a significant player in the global corn market despite the challenging conditions.
For more information, view the article's Disclosure Policy [8]. Austin Schroeder did not have positions in any of the securities mentioned in this article [9].
References:
- USDA: Corn Outlook Report
- Reuters: U.S. corn export sales top forecasts, South Korea, Mexico buy
- Bloomberg: Corn Prices Fall as US Weather Improves, Brazil Raises Export Forecast
- MarketWatch: Corn futures rise on export sales, strong demand
- Reuters: Brazil raises 2025/26 corn export estimate to 45 million tonnes
- USDA: Private Export Sales
- USDA: Weekly Export Sales Report
- Article's Disclosure Policy
- Author's Disclosure: No Positions
- The strong demand for US corn, driven by competitive pricing and contracting activity, is evident in the strong export sales, highlighting the continued significance of technology in facilitating efficient trade and market activities in the global corn market.
- Despite the bearish trend in the U.S. corn market, the effective use of technology in streamlining US Gulf and Pacific Northwest values, as well as facilitating private export sales, contributes to the country's status as a key player in the global corn market, even amidst challenging conditions.
