Corn, wheat, and soybean futures all ended with gains on Monday, amid shifting tariff news.
All three commodities were lower in overnight trade as the US on the weekend announced 25% tariffs on imports from Canada and Mexico and 10% levies on goods imported from China. However, markets recovered after Trump agreed to delay the implementation of tariffs on Mexico until March 1, in exchange for that country’s promises to further ramp up border security. Ideas that Canada may be able to able to wrangle a similar delay – with US President Donald Trump and prime Minister Justin Trudeau scheduled to talk this afternoon – added to the improving sentiment.
However, market watchers said it is still far too early to determine how the tariff story will eventually play out, especially given Trump’s unpredictability.
Meanwhile, weather in South American added to the upside in corn and soybeans. Much of Argentina was warm and dry over the weekend, adding to the stress on corn and soybean crops. Meanwhile, rain increased during the weekend in parts of Brazil, causing further delays to the soybean harvest and raising early concerns about crop quality.
March corn was up 6 ¾ cents at $4.88 ¾, and December gained a nickel to $4.65 ¼. March beans were 16 ¼ cents higher at $10.58 ¼, and November was 12 ¼ cents higher at $10.63 ¼.
Wheat was boosted by short covering and the potential for US tariffs to limit the amount of Canadian wheat flowing across the American border. March Chicago wheat climbed 6 ½ cents to $5.85 ¾, March Kansas City gained 6 ½ cents to $5.85 ¾, and March Minneapolis was up a penny at $6.16 ½.
