Chicago Board of Trade (CBOT) corn, soybean, and wheat futures weakened on Friday as renewed concerns over trade disputes cast uncertainty over demand for U.S. farm products, analysts reported.
President Donald Trump announced plans to impose reciprocal tariffs on multiple countries next week, confirming a Reuters report. Grain traders fear potential retaliatory measures from importers, which could hurt U.S. crop sales.
“Any moves like this may face some pushback against the U.S.,” said Rich Nelson, chief strategist at Allendale, a commodity brokerage. “Psychologically, any evolving tariff is a question.”
Trump imposed 25% tariffs on Canada and Mexico on Saturday but later postponed them following negative market reactions. Meanwhile, U.S. tariffs on China prompted a measured response from Beijing, which notably did not include agricultural goods, providing slight relief for grain traders.
CBOT March corn futures fell 7 ¾ cents to $4.87 ½ per bushel, though they remained near Wednesday’s 15-month peak of $4.98 ½. Soybean futures in the March contract dropped 11 cents to $10.49 ½ per bushel after hitting a six-month high of $10.79 ¾ earlier in the week. March wheat declined by 5 cents to $5.82 ¾ per bushel, retreating from a 3 ½-month high of $5.92 ½.
Market participants exhibited a “risk-off” sentiment heading into the weekend following recent price gains. Analysts also cited improved rainfall in Argentina, which alleviated drought concerns after a period of extreme heat in January. The Rosario grains exchange noted that showers helped rescue the country’s soybean crop from deteriorating conditions.
As the world’s largest exporter of soymeal and soyoil, and the third-largest corn exporter, Argentina’s agricultural conditions heavily influence global prices.
Traders are also monitoring cold weather in Russia, the world’s top wheat exporter, due to potential crop damage.
Looking ahead, the U.S. Department of Agriculture will release its monthly global supply and demand report on Tuesday, with analysts expecting a decline in global wheat imports.
