Chicago soybean, wheat, corn retreat on tariff uncertainty

PARIS/BEIJING: Chicago grain futures declined on Wednesday, with soybeans retreating from a one-month high hit in the previous session, as concerns over an upcoming tariff announcement threatened U.S. farm exports.

U.S. President Donald Trump was expected to impose sweeping new reciprocal tariffs on global trading partners on Wednesday, upending decades of rules-based trade, risking cost increases and likely drawing retaliation from all sides.

Details of the tariff plans, styled by Trump as America’s “Liberation Day”, were still being formulated ahead of a White House Rose Garden announcement ceremony scheduled for 4 p.m. Eastern Time (2000 GMT).

The new duties are due to take effect immediately after Trump announces them.

The most-active soybean contract on the Chicago Board of Trade (CBOT) was down 0.6% at $10.27-3/4 a bushel by 1100 GMT.

Wheat fell after two consecutive sessions, with the most-active wheat contract down 0.65% to $5.36-3/4 a bushel, despite concerns over U.S. supply and U.S. tariffs.

Dry conditions across the Northern Plains heightened supply concerns, while the potential U.S. tariff on Canadian wheat imports could further tighten availability, said Cheang Kang Wei, assistant vice president at StoneX in Singapore.

“The combination of reduced acreage, weather risks, and trade policies could make U.S. spring wheat particularly volatile in the coming months,” Cheang said.

Corn futures slid 1.5% to $4.55 a bushel after three straight sessions of gains.

Despite this pullback, corn prices had been supported by wet weather forecasts for the U.S. Delta and Ohio Valley next week, which could delay planting. Meanwhile, StoneX estimated Brazil’s first corn crop at 25.90 million tons, down from a previous estimate of 26.53 million tons, while the second crop is now forecast to stand at 101.62 million tons, down from the initial outlook of 102.13 million tons.

Commodity funds were net buyers of Chicago Board of Trade soybean, soyoil, corn and wheat futures contracts on Tuesday and net sellers of soymeal futures contracts, traders said.