SINGAPORE: Chicago soybeans lost more ground on Tuesday while corn ticked higher, with both markets trading near their lowest since early January ahead of US tariffs on key trading partners which are likely to disrupt agricultural flows.
Wheat edged higher on support from dry weather in India.
“The fundamental picture for soybeans is bearish given the supplies from South America,” said one oilseed trader in Singapore.
“The market direction will also depend on how China reacts to US tariffs.”
The most-active soybean contract on the Chicago Board of Trade (CBOT) fell 0.4% to $10.08 a bushel, as of 0249 GMT, while corn added 0.1% to $4.56-1/2 a bushel.
Wheat rose 0.1% to $5.48-1/2 a bushel.
US President Donald Trump said that 25% tariffs on goods from Mexico and Canada will definitely take effect on Tuesday, raising fears of a trade war in North America and sending financial markets reeling.
China is targeting American agricultural exports as it prepares countermeasures against fresh US import tariffs, China’s state-backed Global Times reported.
China is by far the world’s largest soybean importer, and Mexico is a major buyer of US soybeans, corn and wheat.
Soybeans down 1-3 cents, corn and wheat mixed
Brazil’s cultivated soybean area for the 2024/25 season was 50% harvested by February 27, up from 39% a week earlier and 48% by the same time last year, AgRural data shows.
Forecasts of dryness in India supported wheat prices although news of a large Australian wheat crop limited gains.
Commodity funds were net sellers of CBOT corn, soybean, soyoil, wheat and soymeal futures contracts on Monday, traders said.
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