Tariffs Weigh on Agriculture Markets

Wheat

Wheat futures rebound but export figures raise concerns

• Wheat futures fell below $5.82 per bushel, retreating from a 3-1/2 month high, amid renewed concerns over potential trade disputes that could weaken demand for US farm products.
• The weekly rally was mainly driven by postponing the potential slowdown in Canadian wheat shipments to the US, as Canada is a key wheat exporter.
• Meanwhile, traders were assessing a monthly update on conditions for US winter wheat, with an improved rating for top producing state Kansas contrasting with declines elsewhere.
• Additionally, Argentina’s recent cut in grain export taxes raised expectations of larger shipments from the South American producer.

Corn futures rally on strengthened US exports

• Corn futures rose toward $4.90 per bushel, approaching their highest level in over a year, driven by tight global supply and strong export figures.
• US export sales have been solid, with the USDA reporting lowered ending stocks, supporting the bullish sentiment.
• However, competitive feed wheat pricing in Europe and uncertainty over US tariffs under President Trump are creating some volatility in the market, with broader trade concerns weighing on prices.
• Despite these challenges, the tight supply from key exporters and lower-than-expected US corn stocks continue to support the upward trend.

Soybean prices stay close to $10.5 mark

• Soybean futures trended towards $10.49 per bushel on Friday, retreating from a six-month high.
• The drop was driven by renewed concerns over potential trade disputes, as President Trump announced plans for reciprocal tariffs on multiple countries, raising fears of retaliatory measures that could impact US crop exports.
• Traders were also watching weather developments in Argentina, the world’s largest exporter of soymeal and soyoil, where improved rainfall helped ease concerns after a period of hot, dry conditions.