Soybean futures rise on softer dollar; Trump’s Greenland threats cap gains

BEIJING: Chicago soybean futures rose on Wednesday, supported by a weaker dollar, although gains were limited by ample supply and global jitters over US President Donald Trump’s threats to reignite a trade war with Europe over Greenland.

Wheat was unchanged, while corn edged higher.

Weaker economic growth would likely reduce demand for grains and oilseeds, but a softer dollar improves export affordability for buyers using other currencies, potentially increasing purchases.

The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.4% at $10.57-1/4 a bushel, as of 0426 GMT.

“CBOT markets are taking a cautious approach due to rising tensions between the US and Europe as President Trump continues to push to take control of Greenland,” said Joe Boyle, an agricultural analyst at Bendigo Bank.

Trump said on Tuesday there was “no going back” on Greenland, refusing to rule out taking the Arctic island by force and lashing out at NATO allies as European leaders struggled to respond. Global equities slid and the greenback languished near three-week lows against the euro and Swiss franc.

Strong demand for soybeans from US crushers is also supporting CBOT prices, but the prospect of a massive Brazilian harvest hitting the market in the coming months is keeping a lid on rallies.

“CBOT grains are also being influenced by the strong global supply outlook for wheat and expectations of a record soybean crop in Brazil,” Boyle said.

Top soybean importer China has fulfilled the commitment made last year to purchase 12 million metric tons of US soybeans, meaning it can now switch to cheaper Brazilian supply, traders said.

Among other crops, CBOT wheat was unchanged at $5.10-1/4 a bushel, while corn edged 0.1% higher to $4.24-1/4 a bushel.

Wheat, corn and soybean prices are all far below their 2022 peaks due to plentiful global supply.