Soybeans fall for second session on US tariff uncertainty

SINGAPORE: Chicago soybean futures slid on Monday, falling further from last week’s three-month high as uncertainty over US tariffs added pressure, after the Supreme Court struck down President Donald Trump’s sweeping tariffs.

Wheat fell for the first time in four sessions, while corn ticked lower.

The most-active soybean contract on the Chicago Board of Trade (CBOT) fell 0.7% to $11.45 a bushel by 0239 GMT, having climbed to its highest since mid-November last week.

Wheat slid 0.7% to $5.76-1/4 a bushel and corn gave up 0.3% to $4.38-1/2 a bushel.

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 wake of the Supreme Court striking down tariffs, analysts said.

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.

US Trade Representative Jamieson Greer said none of the countries that have reached trade deals with the US had shared plans to withdraw following the Supreme Court decision striking down a large swath of Trump’s tariffs.

For market players, the decision has only added more uncertainty to an already volatile market. Supplies from a record large Brazilian harvest are dominating the market for now.

Trucks loaded with soybeans faced a 39-kilometer line to deliver the product to grain terminals at the Amazonian port of Miritituba in Para state, according to late-afternoon traffic data shared with Reuters by oilseed lobby Abiove on Friday.

Large speculators trimmed their net short position in CBOT corn futures in the week to February 17, regulatory data released on Friday showed.

The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, trimmed their net short position in CBOT wheat and raised their net long position in soybeans.