CANBERRA: Chicago corn, wheat and soybean futures rose on Wednesday as traders waited to see if US President Donald Trump will follow through on threats to impose 25% tariffs on imports from Canada and Mexico this weekend.
Brisk US corn, soy sales paces tempered by China’s absence
Fundamentals
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The most active corn contract on the Chicago Board of Trade (CBOT) was up 0.3% at $4.86-3/4 a bushel at 0152 GMT, while CBOT soybeans rose 0.2% to $10.47-1/2 a bushel and wheat added 0.5% to $5.48 a bushel.
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All three contracts are moving back towards highs reached last week - a 15-month high of $4.95 for corn, a six-month peak of $10.76-1/4 for soybeans and a six-week high of $5.67 for wheat.
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Trump still plans to make good on his promise to issue tariffs on Canada and Mexico on Saturday, White House spokeswoman Karoline Leavitt said on Tuesday, adding that Trump also is still “very much” considering fresh tariffs on China.
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Analysts have warned that placing tariffs on goods imported into the US could lead to retaliation and trade wars.
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“The big question left for the bulls is will there be a trade agreement with China that favours US agricultural commodities? If so, when will it happen, and what will be the scope of potential demand?,” StoneX analyst Arlan Suderman said in a note.
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Commodity funds were net buyers of CBOT corn, wheat and soybeans on Tuesday, traders said. Funds have taken a large net long position in corn because world supplies are relatively tight and as a hedge against inflation, analysts say. They are less bullish on soybeans and wheat.
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