CANBERRA: Chicago wheat and corn futures steadied on Friday after tumbling in the previous session due to expectations of increased US plantings, a ramping up of US tariffs and a stronger dollar.
Having hit multi-month highs just last week, wheat was heading for its biggest weekly decline since July last year and corn for its biggest weekly fall since July 2023.
Wheat extends fall, corn steady before U.S. planting data
Soybeans rose but were set to end the week slightly lower as a huge harvest in Brazil added supply to the market.
Fundamentals
The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 0.4% at $5.64-3/4 a bushel at 0234 GMT but down 6.5% for the week.
CBOT corn rose 0.3% to $4.82-1/4 a bushel but was down 4.5% from last Friday’s close, while soybeans were up 0.6% at $10.43-1/2 a bushel and 1.4% lower this week.
Wheat reached an eight-month high of $6.21-1/4 and corn a an 18-month peak of $5.13-3/4 last week, supported by expectations that supply will tighten.
But improving crop weather in South America and the passing of cold snaps in the United States and Russia have eased fears about near-term threats to production.
Higher prices are also predicted to lure farmers away from soybeans, whose supply is more plentiful, mostly towards corn.
The US Department of Agriculture said on Thursday US farmers would plant more corn and wheat and less soybeans in 2025 than they did in 2024.
Ukraine is also likely to cut its 2025 soybean and sunflower area in favour of corn, the country’s first deputy farm minister said on Thursday.
Meanwhile, US President Donald Trump said his proposed 25% tariffs on Mexican and Canadian goods would take effect on March 4 along with an extra 10% duty on Chinese imports, raising the threat of retaliation against US agricultural exports and pressuring prices.
Commodity funds were again net sellers of CBOT corn and wheat on Thursday, traders said.
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