Chicago wheat and soybean futures faced pressure on Monday after U.S. President Donald Trump announced plans to impose punitive tariffs on aluminum and steel imports, sparking fears of potential retaliation against U.S. grain and oilseed exports, analysts said.
“This rekindled fears that retaliatory tariffs could be coming for U.S. agricultural products,” said Randy Place, an analyst at Hightower Report. “The more tariffs he puts on, the harsher response we’re likely to get.”
Corn futures, however, largely shrugged off tariff concerns as traders focused on Tuesday’s U.S. Department of Agriculture (USDA) supply and demand report, which is expected to show tighter U.S. corn ending stocks.
At the Chicago Board of Trade, the most active wheat contract (Wv1) settled down 3-1/4 cents at $5.79-1/2 per bushel, while corn (Cv1) rose 4 cents to $4.91-1/2 per bushel. Soybeans (Sv1) ended flat at $10.49-1/2 per bushel.
Corn received additional support from strong demand signals, including a large sale to Mexico and export inspections that met the high end of trade expectations.
In South America, improving weather in Argentina and a larger-than-expected soybean harvest in Brazil weighed on soy prices. Showers expected this week in Argentina could ease drought conditions affecting corn and soybean crops.
Meanwhile, wheat prices were further pressured by expectations of substantial wheat ending stocks in Tuesday’s USDA report and diminished concerns over freeze damage in the Black Sea and U.S. wheat-growing regions. A cold front is moving into key wheat-producing areas, but expected snow cover should mitigate the risk of winterkill.
