Wheat prices declined on Wednesday at the Chicago Exchange as escalating trade war tensions and concerns over market oversupply weighed on agricultural commodities.
Signals of a potential peace agreement between Russia and Ukraine added further pressure on wheat prices. Both countries are key global wheat exporters, and a resolution to the three-year conflict could boost grain supplies in international markets.
Investor sentiment was further dampened after former U.S. President Donald Trump reaffirmed plans to impose tariffs on Canadian and Mexican imports starting next month, disregarding recent negotiations. Additionally, Trump instructed the U.S. Trade Ministry to investigate copper imports, exploring whether tariffs on the industrial metal are necessary to protect national security.
Norway’s government warned that Trump’s proposed 25% tariffs on European imports could trigger a dangerous global trade war, adding to market anxieties.
In commodity markets, Wheat May futures fell 1.5% to $5.79 per bushel, while Corn May futures dipped 0.1% to $4.93 per bushel. Soybean May futures dropped 0.7% to $10.41 per bushel, reflecting the broader bearish sentiment across agricultural markets.
