SINGAPORE: Chicago corn futures gained more ground on Tuesday, as US President Donald Trump paused his plans to impose tariffs on Mexican and Canadian goods.
Soybeans and wheat slid after closing higher on Monday. While Mexico is the biggest importer of US corn, China is the leading market for US soybeans.
Mexico, Canada and China import several other agricultural goods from the United States. “There is some relief for agricultural markets with suspension of US tariffs on Canada and Mexico,” said one Sydney-based grains trader.
The most active corn contract on the Chicago Board of Trade (CBOT) was up 0.3% at $4.90-1/4 a bushel, as of 0253 GMT, building on gains of more than 1% from the previous session.
Soybeans lost 0.4% to $10.53-3/4 a bushel and wheat fell 0.4% to $5.64-1/2 a bushel.
Trump suspended his threat of steep tariffs on Mexico and Canada on Monday, agreeing to a 30-day pause in return for concessions on border and crime enforcement with the two neighbouring countries. US tariffs on China are still due to take effect within hours.
Agricultural futures had tumbled early on Monday after Trump over the weekend ordered 25% tariffs on imports from Canada and Mexico and 10% tariffs on imports from China, triggering fears of a broader trade war that could impact US agricultural commodities.
Corn drops nearly 2% on US tariffs; wheat, soybeans down
The European Commission on Monday kept unchanged its forecast for usable production of common wheat, or soft wheat, in the European Union in 2024/25 at 111.9 million metric tons, the lowest level in 12 years.
In supply-and-demand data, the Commission also maintained its forecast for the EU’s 2024/25 soft wheat exports at 25 million tons, unchanged from its previous update in December.
Commodity funds were net buyers of CBOT corn, wheat, soybean, soymeal and soyoil futures contracts on Monday, traders said.
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