Chicago crop futures added to the previous day’s gains on Thursday as the White House continued to claw back tariffs announced earlier this week.
President Donald Trump agreed to pause until April 2 tariffs on imports from Canada and Mexico that are covered by the USMCA, the free trade agreement signed between Canada, the U.S., and Mexico in 2020.
On Tuesday, Trump levied 25% tariffs on most goods imported from Canada and Mexico, as well as new tariffs on imports from China, sparking trade war fears that sent ag markets sharply lower. However, Trump began to walk back the tariffs the following day, granting automakers a 1-month reprieve before offering further relief today.
However, reports said more than 60% of all Canadian goods shipped to the US are not covered by the USMCA and might still be subject to the original 25% tariff.
A weaker US dollar also helped to lift crop futures, with corn further supported by a relatively positive USDA weekly export sales report. The report pegged bookings of old-crop US corn for the week ended Feb. 27 at 909,050 tonnes, near the top of trade expectations. New-crop sales amounted to 52,000 tonnes. March corn was up 8 ¼ cents to $4.64, and December gained 4 ¼ cents to $4.51.
For soybeans, weekly old-crop sales came in on the low side of trade ideas at 352,883 tonnes. However, new-crop bookings beat market expectations at 54,886 tonnes. May soybeans gained 15 ½ cents to $10.27 ¼, and November was 11 ¼ cents higher at $10.20 ¾.
The weaker greenback boosted wheat, as did short covering. Export sales for the week ended Feb. 27 were mixed, with old-crop bookings landing in the middle of trade ideas at 338,703 tonnes, and new-crop bookings at the high end of expectations at 77,000. May Chicago was up 5 ¾ cents at $5.54, May Kansas City gained 8 ¾ cents to $5.65 ¾, and May Minneapolis added 6 cents to $5.94.
