Chicago Board of Trade (CBOT) soybean futures declined for a third consecutive session on Tuesday, pressured by abundant South American supplies and lingering uncertainty over U.S. tariffs’ impact on domestic demand.
Corn futures also dipped in a volatile trading session after the U.S. Department of Agriculture (USDA) left domestic corn inventory estimates unchanged in its monthly supply-and-demand report, despite strong export sales and ongoing trade tensions with Mexico.
Wheat futures followed suit, closing lower after the USDA reported larger-than-expected domestic and global wheat inventories.
Market Performance
Wheat: Down 5-3/4 cents at $5.56-3/4 per bushel.
Corn: Down 1-3/4 cents at $4.70-1/4 per bushel.
Soybeans: Down 2-3/4 cents at $10.11-1/4 per bushel.
Weakness in the canola market further pressured soybean futures, dragging down soyoil prices, traders noted.
Trade Tensions and Market Uncertainty
Export concerns remain at the forefront as U.S. tariff disputes with major buyers—Mexico, Canada, and China—cloud the outlook for American agricultural exports. Analysts believe the USDA is holding off on forecast adjustments as it assesses potential tariff implementations and their repercussions.
With China increasingly favoring Brazil’s bumper soybean crop, grain traders fear the U.S. may struggle to secure buyers. “The question is, where are we going to sell the (U.S.) beans? No one knows,” said Jack Scoville, vice president at Price Futures Group.
For corn futures, the USDA’s decision to keep its export forecast unchanged puzzled analysts, given the strong pace of sales. “If they are basing predictions on normal market trends, I don’t understand how they can justify not making an adjustment at this point,” said Angie Setzer, partner at Consus Ag.
Uncertainty surrounding U.S. tariffs continues to unsettle both financial and commodity markets, with traders closely monitoring upcoming policy moves and global trade reactions.
