Chicago soybean and corn futures experienced declines on Tuesday as traders prepared for the impending broad tariffs announced by U.S. President Donald Trump. This situation has raised concerns about the potential impact on agricultural exports from the United States. As of 0215 GMT, the most-active soybean contract on the Chicago Board of Trade (CBOT) fell by 0.07%, settling at $10.14 per bushel.
Corn prices also slipped by 0.22%, reaching $4.56 per bushel after having enjoyed gains in the previous two trading sessions. Trump’s announcement regarding the tariffs, which are set to take effect on April 2, applies to all nations and has heightened attention towards major agricultural trading partners such as China, Mexico, and Canada. The ongoing trade tensions have already caused China to shift its soybean purchases from the U.S. to Brazil, and further discord could exacerbate the situation.
Additionally, a report released by the U.S. Department of Agriculture (USDA) indicated that soybean stocks were higher than anticipated, further putting pressure on prices. In China, the futures market also reflected this downward trend, with Dalian soymeal futures declining by 1% and Zhengzhou rapeseed meal futures dropping approximately 2% as of 0155 GMT. Wheat prices saw a slight dip of 0.09%, falling to $5.36 per bushel, despite lower-than-expected plantings reported by the USDA.
Favorable weather conditions in key growing regions and a ceasefire in the conflict between Russia and Ukraine contributed to the downward pressure on wheat prices. Ole Houe, of IKON Commodities in Sydney, indicated that the market’s attention is now fixated on the impending U.S. tariffs and additional concerns regarding proposed port fees on Chinese-built vessels. Furthermore, Argus Media has revised its forecast for Russian wheat production in the 2025-26 period, now estimating it at 80.3 million metric tons, down from 81.5 million projected in November 2024.
Overall, Houe expressed skepticism about the near-term prospects for grain prices, expecting them to decline significantly with the upcoming tariff announcements.