CBOT corn declines as trade tensions escalate

CHICAGO, March 4 (Reuters) - Chicago Board of Trade corn futures fell to their lowest levels of 2025 on Tuesday on heightened concerns that U.S. President Donald Trump's trade policies will disrupt U.S. agricultural exports, traders said.

• CBOT May corn CK25 settled down 4-3/4 cents at $4.51-1/2 per bushel after dipping to $4.42-1/2, the lowest on a continuous chart of the most-active corn contract Cv1 since Dec. 20.

• Trump slapped 25% tariffs on imports from Mexico and Canada and doubled duties on Chinese goods to 20%.

• Ottawa responded with 25% tariffs on more than $20 billion in U.S. imports while Beijing said it would impose additional tariffs on agricultural products starting next week. Mexico's government is expected to respond on Sunday.

• Commodity funds hold a large net long, or bought, position in CBOT corn futures, leaving the market prone to periods of long liquidation.

• Improving South American crop prospects added to bearish sentiment. Rains over the last week in corn and soy areas of Argentina have led to "major improvements in soil moisture," space technology firm Maxar said in a daily crop weather note.

• The CBOT reported 59 deliveries against the March CH25 corn futures contract, which expires on March 14. COR/DEL