BEIJING: The Chicago Board of Trade (CBOT) futures for soybeans and corn declined on Tuesday, amid concerns that higher US tariffs on steel and aluminium could trigger retaliatory actions against US agricultural exports.
Wheat fell for the third straight session, weighed down by fears of retaliatory tariffs and easing weather threats in the US and Black Sea regions. US President Donald Trump’s decision to raise tariffs to 25% has fuelled concerns over reduced demand for US oilseed and grains, although top buyer China has so far not targetted agricultural products.
The most-active soybean contract on the CBOT eased 0.14% at $10.48 a bushel by 0354 GMT. As of February 6, Brazil’s soybean harvest for the 2024-25 season was 15% complete, according to AgRural, up six percentage points from the previous week.
Markets are eyeing any potential delays that could impact the sowing of the second corn crop.
High freight costs and stronger local currency are also slowing Brazilian soybean sales. Predicted showers in Argentina could ease dry conditions for corn and soy crops.
Soybean and corn prices could face pressure from bearish sentiment as Argentina’s weather conditions improve, said Johnny Xiang, founder of the Chinese agriculture consulting firm Agradar.
Traders also expect the US Department of Agriculture (USDA) to cut ending stocks for soybeans and corn in its monthly report due later in the day. Prices are expected to trade within a narrow range ahead of the report, Xiang added.
Chicago corn, soy, wheat futures drop on US tariff fears
CBOT corn fell 0.2% to $4.90-4/8, despite expectations of tighter supply and signs of strong demand, including a hefty corn sale to Mexico.
Wheat dipped 0.3% to $5.78 a bushel as easing freeze damage fears in key wheat-growing regions and expectations of substantial US wheat ending stocks weighed on the market.
Russia’s wheat export forecast was cut due to low stocks, according to IKAR consultancy, while export prices rose as shipments slowed ahead of upcoming quotas.
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