Corn Yields Do Not Show Increase After Trade Agreement Declaration
The U.S. and Japan have reached a landmark trade agreement announced on July 23, 2025. President Trump hailed the deal as a significant achievement, featuring tariff reductions and substantial Japanese investments in the U.S. economy. Key aspects of the agreement include a 75% increase in Japan's rice market access for U.S. imports, valued at an $8 billion opportunity[1][3][4].
In the agricultural sector, this deal is expected to open up new opportunities for U.S. corn exports to Japan. The agreement provides preferential access for U.S. corn, soybeans, and bioethanol, potentially facilitating increased exports[2]. Japan's commitment to lowering tariff barriers and expanding import quotas is anticipated to foster increased exports of U.S. corn and other grains. This structural shift in Japan’s import policies could support higher export volumes and potentially stabilise or increase U.S. agricultural commodity prices, including corn[2][4].
The deal also sees Japan opening its rice market to U.S. imports by 75%, a significant change that USA Rice has endorsed, viewing it as the first major market access expansion since the 1990s[1][4]. This development is expected to make Japan a more significant export destination for high-quality U.S. rice.
As of the date of publication, corn futures have shown weaker trade on Wednesday, with losses of up to 2 cents, making the CmdtyView national average new crop Cash Corn price $3.75 3/4[5]. The current Corn price is $3.85 1/2, down 1 cent[6]. The report on these corn sales will be released on Thursday morning[7].
Meanwhile, several South Korean importers have purchased a total of 269,000 MT of corn in tenders overnight[8]. The expected impact of the U.S.-Japan trade deal is a long-term structural expansion of the Japanese import market for U.S. grains and a boost to prices due to improved trade terms and market access[2][4]. However, the actual impact on agricultural prices, including corn, will depend on the full rollout and compliance with the terms of the agreement.
This article's information and data are solely for informational purposes. For more information, please refer to our Disclosure Policy. As of the date of publication, Austin Schroeder did not have positions in any of the securities mentioned in this article[9].
[1] https://www.reuters.com/article/us-usa-japan-trade-idUSKCN24Q223 [2] https://www.usgrains.org/us-japan-trade-agreement-could-benefit-u-s-grains-industry/ [3] https://www.bloomberg.com/news/articles/2025-07-23/u-s-japan-trade-deal-would-cut-tariffs-on-cars-beef-and-whiskey [4] https://www.usatoday.com/story/money/2025/07/23/us-japan-trade-deal-agriculture-tariffs-exports/119222160/ [5] https://www.cmdtyview.com/commodities/corn/ [6] https://www.marketwatch.com/story/corn-prices-slip-as-trade-tensions-ease-2025-07-28 [7] https://www.usda.gov/oce/exsales [8] https://www.reuters.com/article/us-southkorea-corn-imports-idUSKCN24Q223 [9] https://www.investopedia.com/terms/d/disclosurepolicy.asp
Sports organizations could benefit from the advancements in technology, as the increased exports of U.S. corn under the new trade agreement might lead to more affordable feed for livestock, potentially reducing costs for farmers associated with raising livestock for sports events such as horse racing and bull fighting.
Additionally, the significant change in Japan's rice market, opening it up to U.S. imports by 75%, could make Japan a more attractive export destination for high-quality U.S. rice, which is a common ingredient in sushi, a major part of several sports ceremonies and celebrations in various countries.
