CORN MARKET SHOWS MIXED PERFORMANCE ON B3 AS INTERNATIONAL PRICES DECLINE

THE CORN MARKET MOVED THROUGH A PHASE OF ADJUSTMENTS THIS TUESDAY, SHOWING A MIXED PERFORMANCE ON BRAZIL’S FUTURES EXCHANGE WHILE INTERNATIONAL PRICES EXTENDED LOSSES. AFTER A SEQUENCE OF DECLINES OVER THE PAST WEEK, TRADING WAS MARKED BY TECHNICAL REBOUNDS IN SOME CONTRACTS AND CONTINUED CAUTION AMONG MARKET PARTICIPANTS.

ON THE BRAZILIAN EXCHANGE, B3, CORN FUTURES CLOSED THE SESSION UNEVENLY. PART OF THE CONTRACTS MANAGED TO POST DAILY GAINS, SUPPORTED BY OPPORTUNISTIC BUYING AND TECHNICAL RECOMPOSITION AFTER RECENT LOSSES. A MORE FAVORABLE EXCHANGE RATE ALSO PLAYED A ROLE, WITH THE DOLLAR TRADING AT LEVELS SEEN AS MORE ATTRACTIVE FOR EXPORTS, IMPROVING THE COMPETITIVENESS OF BRAZILIAN CORN IN THE GLOBAL MARKET.

IN ADDITION, SPOT MARKET TRANSACTIONS WERE RECORDED IN SPECIFIC REGIONS, WHILE THE DOMESTIC MARKET REMAINED FOCUSED ON STOCK COVERAGE AHEAD OF YEAR END. THIS MOVEMENT HELPED LIMIT SHARPER DECLINES AND PROVIDED SHORT TERM SUPPORT TO PRICES. THE JANUARY 2026 CONTRACT CLOSED AT R$ 71.85, POSTING A DAILY GAIN BUT STILL ACCUMULATING A WEEKLY LOSS. THE MARCH 2026 CONTRACT SETTLED AT R$ 75.30, ALSO HIGHER ON THE DAY YET LOWER ON THE WEEK, WHILE THE MAY 2026 CONTRACT ENDED AT R$ 74.52, REPEATING THE SAME PATTERN.

IN THE INTERNATIONAL MARKET, CORN FUTURES TRADED IN CHICAGO CLOSED LOWER. PRICES WERE PRESSURED BY WEAKNESS ACROSS OTHER GRAINS AND BY THE DECLINE IN OIL PRICES. THE DROP IN WHEAT PRICES INCREASED DIRECT COMPETITION IN THE ANIMAL FEED MARKET, WHILE FALLING OIL PRICES WEIGHED ON THE BIOFUELS SEGMENT. GIVEN CORN’S STRONG LINK TO ETHANOL PRODUCTION IN THE UNITED STATES, THIS DYNAMIC HAD A DIRECT NEGATIVE IMPACT ON CORN FUTURES.

ADDITIONAL UNCERTAINTY CAME FROM THE ANNOUNCEMENT THAT DECISIONS REGARDING BLENDING MANDATES FOR 2026 AND 2027 WOULD BE POSTPONED. THIS DELAY HEIGHTENED UNCERTAINTY FOR THE ETHANOL INDUSTRY, WHICH REPRESENTS A SIGNIFICANT SHARE OF US CORN CONSUMPTION, AND CONTRIBUTED TO A MORE DEFENSIVE TONE IN THE MARKET.

OVERALL, THE SESSION HIGHLIGHTED A MARKET STILL SEARCHING FOR DIRECTION. IN BRAZIL, TECHNICAL ADJUSTMENTS, CURRENCY SUPPORT AND YEAR END STOCK COVERAGE PROVIDED LIMITED RELIEF. INTERNATIONALLY, HOWEVER, PRESSURES FROM ENERGY MARKETS, COMPETING GRAINS AND POLICY UNCERTAINTY CONTINUE TO WEIGH ON PRICES. THE MIXED PERFORMANCE REINFORCES THAT THE CORN MARKET REMAINS HIGHLY SENSITIVE TO SHORT TERM TECHNICAL FACTORS AND MACROECONOMIC SIGNALS, WITH VOLATILITY LIKELY TO PERSIST IN THE NEAR TERM.