CHICAGO: US corn and wheat futures fell on Friday, weighed down by fresh concerns about demand after US President Donald Trump's threatened to place tariffs on imports of goods from Mexico in response to illegal immigration across the US border.
Soybeans also eased but recovered from session lows as the latest forecasts for more rain in the US Midwest raised questions about how much soy acreage growers will be able to plant.
All three commodities were on track to post big gains for the month and the week as heavy rains throughout May have caused severe delays in US soybean and corn planting.
The excessive moisture also may have cut into the quality of the Plains wheat crop that will be harvested soon.
For the month, the most-active Chicago Board of Trade corn futures contract was up 18.8pc , on track for its biggest monthly gain since June 2015.
Soft red winter wheat futures have rallied 17.3pc during May, which would be its biggest monthly gain since June 2017, and soybean futures were up 3.8pc .
Trump said on Thursday he will impose a tariff on all goods coming from Mexico starting at 5pc and ratcheting higher until the flow of illegal migrants ceases.
Mexico is the top foreign buyer of US corn and wheat and the second largest buyer of US soybeans.
"The US government continues to throw out banana peels for the grain bulls to slip on," Matt Zeller, director of market information at INTL FCStone said in a note to clients.
At 9:48 a.m. CDT (1448 GMT), CBOT July corn futures were down 5-1/4 cents at $4.31 a bushel.
"Geopolitics is also back to centre stage with tensions between the US and Mexico caused by immigration," crop consultancy Agritel said.
Declines in corn were kept in check by the Trump administration's announcement that it lifted restrictions on the sale of higher ethanol blends of gasoline, potentially boosting demand for the yellow grain.
The announcement allows gasoline stations to sell blends containing up to 15pc corn-based ethanol year-round, ending a summertime ban.
CBOT July wheat was 11-1/4 cents lower at $5.03-1/4 a bushel. CBOT July soybeans were down 1-1/2 cents at $8.87 a bushel.
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