Corn and soybean futures ended lower on Tuesday, while wheat closed mixed.
Corn and soybeans both posted modest declines in the wake of US President-elect Donald Trump’s vow to impose a 25% tariff on imports from Canada and Mexico, with goods from China potentially seeing a further 10% tariff. “Over the long run, import tariffs will end up transferring agriculture from (the) U.S. to South America and eastern Europe, and hitting the two biggest customers of our country in the teeth with tariffs will do just that,” Charlie Sernatinger of Marex said in a note this afternoon.
Good weather for corn and soybean crops in South America added to the downside in both markets. Rains in northeastern Argentina and southern Brazil are forecast to spread over most of the South American production areas over the next week.
December corn fell 4 ¾ cents to $4.20 and March lost a nickel to $4.28. January soybeans dropped 2 ¼ cents to $9.83 ½, and March eased a ¼ cent to $9.94.
Wheat started the day higher, but gains were pared into the close on Russian wheat export prices remaining stubbornly low even as Black Sea tensions increase. Monday’s USDA crop progress report pegged the US winter wheat crop at 55% good to excellent as of Sunday, compared to 51% for the average guess, 50% a year ago, and 49% the previous week. The ratings are up 17 points in four weeks, and the highest for the week in six years. December Chicago added 3 ¾ cents to $5.39 ½, December Kansas City gained 4 cents to $5.50 ½, and December Minneapolis lost 3 ½ cents to $5.77 ½.
