Chicago corn futures declined on Friday as trade tensions and abundant South American supplies weighed on prices, analysts reported. Meanwhile, soybeans edged higher in volatile trading, while wheat slipped despite expectations of lower Russian wheat exports providing some price support.
Grain markets came under pressure following the U.S. government’s revised tariffs on steel and aluminum imports, prompting retaliatory measures from the European Union and Canada.
“It’s a lot of choppiness,” said Dan Basse, president of AgResource. “We can’t sustain a trend not knowing what the next big tariff headline will be, and people are not willing to take on any risk.”
On the Chicago Board of Trade, the most-active corn contract settled down 6-3/4 cents at $4.58-1/2 per bushel, pressured by index funds liquidating long positions, Basse noted. Wheat dropped 5-1/2 cents to $5.57 per bushel, while soybeans rose 5-1/4 cents to $10.16 per bushel.
Global Supply and Demand Factors Impacting Markets
While lower corn and soy production estimates in Argentina provided some support to prices, a record soybean harvest in Brazil is expected to keep downward pressure on the market, analysts said.
In wheat markets, Russia’s IKAR consultancy lowered its 2024/25 wheat export forecast to 41 million tons, down from 42.5 million tons. A continuing export quota in Russia and low U.S. wheat prices have driven increased demand for American wheat.
“U.S. wheat is the cheapest in the world and priced under the Black Sea, and we’re seeing an increase in sales,” Basse added.
