CHICAGO, March 11 – Soybean futures on the Chicago Board of Trade (CBOT) ended lower for the third consecutive session on Tuesday, pressured by the influx of South American supplies and uncertainty regarding the impact of U.S. tariffs on domestic demand. Traders noted that the ongoing tariff disputes were weighing on the market’s outlook.
Corn futures also dropped during a volatile session after the U.S. Department of Agriculture (USDA) left U.S. corn stock levels unchanged in its monthly supply-and-demand report. Despite strong export sales and ongoing trade tensions with Mexico, the USDA did not adjust its domestic corn forecast, leaving many traders perplexed.
Wheat futures followed suit and closed lower after the USDA reported that both domestic and global wheat inventories exceeded market expectations.
Market Closing Prices
Wheat: The most-active wheat contract fell by 5-3/4 cents, ending at $5.56-3/4 per bushel.
Corn: Corn dropped by 1-3/4 cents, closing at $4.70-1/4 per bushel.
Soybeans: Soybeans finished down 2-3/4 cents at $10.11-1/4 per bushel.
Concerns Over Soybean Market and Tariffs
Weakness in the canola market also contributed to pressure on soyoil prices, which, in turn, impacted soybean futures. Traders and farmers are particularly concerned about export levels, with U.S. tariffs on key agricultural buyers such as Mexico, Canada, and China threatening sales.
The USDA’s decision not to make changes to its forecast has led some analysts to believe that the agency is waiting to see how the U.S. will handle potential new tariffs and how trading partners will respond. Many fear that further tariffs could disrupt trade and harm economic growth, shaking up global grain markets.
With the ongoing trade war between the U.S. and China, questions about where the U.S. will sell its soybeans remain unanswered. Jack Scoville, Vice President at Price Futures Group in Chicago, commented, “The question is, where are we going to sell the U.S. beans? No one knows.”
Uncertainty in the Corn Market
Some analysts were baffled by the USDA’s decision to leave the U.S. corn export forecast unchanged despite the current pace of sales. Angie Setzer, partner at Consus Ag, questioned the rationale behind the USDA’s decision: “If all you can do is predict the futures based on normal market trends, as they have told me they do, I’m not sure how they can rationalize not making an adjustment at this point.”
As trade tensions and tariff concerns continue to create uncertainty, traders and farmers will continue to monitor export patterns closely in the coming weeks.
Related topics:
