HAMBURG: Chicago soybeans fell on Monday, weakened by trade tensions between the United States and its key trading partners, including China.
Corn and wheat rose, with the export-boosting weaker trend in the dollar offering support in the face of market uncertainty caused by U.S. trade tariffs.
Chicago Board of Trade most-active soybeans fell 0.2% to $10.23 a bushel by 1149 GMT, corn rose 0.5% to $4.71-3/4 a bushel and wheat rose 1.5% to $5.59-1/2 a bushel.
Trade disputes over U.S. tariffs are taking centre stage in agricultural markets with the next stage of the U.S. trade war with top global soybean buyer China awaited.
“Brazil’s large new soybean harvest is in the final stagesgiving China ample volumes to buy to replace U.S. supplies as the tariff dispute continues,” said Matt Ammermann, StoneX commodity risk manager. “China does not appear to be under pressure because of the likely loss of U.S. imports and rising Brazilian soybean premiums seem to indicate that China is actively turning to Brazil to replace U.S. soybeans.”
Wheat down 6-8 cents, corn down 1-3, soy down 2-3
“With China in a comfortable supply situation and remembering the long negotiations needed for the Chinese trade deal in the first Trump presidency, it could be a long time before the U.S. reaches a new trade deal with China.”
Market players are waiting for the U.S. Department of Agriculture’s next monthly supply/demand report on March 11. The report will consider trade policies in place when the forecasts for grains and soybeans are issued, an agency official said on Thursday.
“There is concern in wheat markets about dryness in southern Russia and still in parts of the U.S.,” Ammermann said. “The weaker trend in the dollar also improves U.S. export prospects at a time when U.S. wheat is just about the cheapest in world markets.”
American Dollar Exchange Rate