Markets Now Wrap: Corn Drops on Fund Pressure Despite Tariff Headlines

May 29, 2025 – In today’s Markets Now closing segment, Farm Journal’s host speaks with a broker from Paradigm Futures to dissect the day’s developments in the grain markets. Despite initial optimism tied to tariff policy headlines, ag commodities failed to hold gains into the close—particularly corn, which led the decline on continued pressure from funds.

🔍 Key Takeaways

• Corn Futures: Funds were active sellers, pushing July and December contracts lower despite a favorable ruling in a pending tariff case involving U.S. ag exports.
• Tariff Developments: While the trade implications are notable, the market appeared to shrug off the news, instead reacting to technical levels and fund flows.
• Soybeans and Wheat: Both attempted early rallies but faded into the afternoon session, closing slightly lower or unchanged.
• Basis Outlook: The Paradigm broker notes some regional basis firming in the Western Corn Belt, though overall movement remains light.
• Weather Premiums: With planting nearly complete, weather volatility may be the next key catalyst heading into June.

📊 Analyst Perspective

The Paradigm Futures analyst emphasized that “market reactions are being driven more by fund positioning than fundamentals,” pointing to net short positions in corn as a persistent weight. He also highlighted that, while the tariff ruling is positive, it failed to trigger commercial buying or alter demand forecasts in a meaningful way.

📉 Outlook Heading into Friday

With the weekly Export Sales report due Thursday morning and positioning ahead of month-end, traders will be watching closely for volume signals and any demand surprises. For corn, support remains tenuous as funds continue to press their short advantage.

Watch the full segment above for deeper insights, including live market charts and comments from Paradigm’s trading desk.