BEIJING: Chicago wheat futures dropped on Tuesday, as improved weather forecasts in crucial growing regions tempered some of the bullish outlook, while traders monitored the ongoing Russia-Ukraine peace negotiations.
The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 0.27% at $5.46-6/8 a bushel. Forecasts show positive conditions for the Black Sea region and rain expected in the US wheat belt, analysts said.
The US-Russia talks on Ukraine also weighed on prices, with progress potentially bearish for prices as a ceasefire could secure Black Sea shipments. A strong dollar further pressured wheat prices, making US exports less competitive.
Traders are closely monitoring tariff talks with Canada, Mexico, and China, as US President Donald Trump plans new reciprocal tariffs next week, though details remain uncertain. “We expect a turbulent week ahead of April 2 as traders position themselves ahead of any potential tariffs. Everything is possible,” said Andrew Whitelaw at agricultural consultants Episode 3.
Trump also announced 25% secondary tariffs on countries buying oil or gas from Venezuela. Soybeans and corn both edged lower, pressured by US tariffs and concerns over reduced demand.
Soybeans slipped 0.07% to $10.06-4/8 a bushel, marking a third consecutive session of decline, amid the China-US trade standoff and Brazil’s bumper harvest.
Corn fell 0.05% to $4.64 a bushel, as speculators pulled out ahead of tariffs and the March 31 planting surveys, with expectations that farmers will plant more corn. Taiwan is seeking to buy 100,000 metric tons of US milling wheat and 65,000 metric tons of feed corn, according to European traders.
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