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USDA Supply Shock Sends Corn Tumbling as Mexico’s Farmers Face Added Pain

Fresh USDA estimates of record U.S. supplies with weaker exports jolted futures, intensifying financial pressure on Mexico’s grain sector.

Overview

  • Corn futures fell about 5.4% to roughly $166 per ton in Chicago, with soybeans near $380 and wheat around $188 after the surprise USDA report.
  • The USDA pointed to larger planting, higher yields and record U.S. inventories while trimming the export sales outlook, reinforcing a bearish market tone.
  • Analysts reported substantial unsold Mexican grain stocks weighing on prices, including 100–120k tons in Sinaloa, 600–700k tons in the Bajío and about 1 million tons in Chihuahua.
  • Peso appreciation further reduces local revenues from dollar‑priced crops in Mexico, worsening the hit from lower international prices, according to GCMA.
  • China’s Sinograin purchased at least 10 U.S. soybean cargoes and plans to auction 1.1 million tons to manage space, supporting near‑term flows but not offsetting weaker overall export prospects.