BEIJING: Chicago soybean futures declined on Wednesday, retreating from a one-month high hit in the previous session, as concerns over an upcoming tariff announcement threatened US farm exports.
On Tuesday, gains were fuelled by a meeting between a coalition of oil and biofuel groups and the US Environmental Protection Agency, which discussed raising federal mandates for biomass diesel blending, leading to higher soyoil prices.
As of 0301 GMT, the most-active soybean contract on the Chicago Board of Trade (CBOT) was down 0.27% at $10.32 a bushel.
Meanwhile, wheat extended gains for a third consecutive session, supported by concerns over US supply and trade policy, according to traders.
The latest US Department of Agriculture report projected lower-than-expected planting intentions.
Dry conditions across the Northern Plains heightened supply concerns, while the potential US tariff on Canadian wheat imports could further tighten availability, said Cheang Kang Wei, assistant vice president at StoneX in Singapore.
“If the US does not proceed with proposed ocean freight tariffs, additional upside momentum may emerge. The combination of reduced acreage, weather risks, and trade policies could make US spring wheat particularly volatile in the coming months,” Cheang said.
The most-active wheat contract rose 0.05% to $5.41 a bushel.
Corn futures slid 0.6% to $4.59 a bushel after three straight sessions of gains.
Despite this pullback, corn prices had been supported by wet weather forecasts for the US Delta and Ohio Valley next week, which could delay planting.
Meanwhile, StoneX estimated Brazil’s first corn crop at 25.90 million tons, down from a previous estimate of 26.53 million tons, while the second crop is now forecast to stand at 101.62 million tons, down from the initial outlook of 102.13 million tons.
Chicago soybeans at 3-week high on biofuel talks, Brazil harvest, US tariffs weigh
Traders are closely monitoring the April 2 tariff announcement, along with concerns over proposed US port fees on Chinese-built vessels.
According to the Washington Post on Tuesday, White House aides are proposing tariffs of about 20% on most US imports.
Commodity funds were net buyers of Chicago Board of Trade soybean, soyoil, corn and wheat futures contracts on Tuesday and net sellers of soymeal futures contracts, traders said.
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