CHICAGO: Chicago soybean futures came under pressure on Friday after the US Supreme Court struck down US President Donald Trump’s sweeping tariffs, pausing a rally that had begun on February 4 when Trump said China would make additional purchases of US soybeans.
Analysts said China may be less likely to follow through on another big purchase of US soybeans that Trump has been touting for several weeks in the absence of tariffs as a stick. Corn was little changed in choppy trade, and wheat hit its highest point since June on a short-covering rally.
The most-active soybean contract on the Chicago Board of Trade (CBOT) fell 3-1/2 cents to USD11.37-1/2 per bushel. Though the justices ruled that Trump exceeded his authority by implementing tariffs under a law meant for use in national emergencies, the decision has raised questions about whether or how the administration will pursue new tariffs through other legal strategies.
For the market players who closely monitor China, the world’s biggest soybean importer, the decision has only added more uncertainty to an already volatile market.
CBOT wheat rose 14 cents to USD5.73-1/2 a bushel, hitting its highest point since late June on a continuous chart. Short-covering by investors, encouraged by concerns over the impact of winterkill and dryness in the US wheat belts, has pushed wheat prices through chart resistance levels. Global wheat supplies could tighten in the 2026/27 season while corn production may also dip, the International Grains Council said on Thursday. CBOT corn settled 1-3/4 cents higher to end at USD4.27-1/2 per bushel without any fresh news for market players to trade on.
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