The most active soy contract in the Chicago Stock Exchange (CBOT) gave up 1.2%, AU $ 362.47, while corn lost 1.8%, AU $ S170.27. Wheat fell 2.1%, AU $ S197.22.
The soybean and corn of Chicago Caencon force this Tuesday, March 4 and touched their lowest level since the beginning of January, at a time when China’s retaliation tariffs on American agricultural products threaten to interrupt agricultural flows. The wheat also descended strong, given the concerns about the dry climate that harms the yields in India.
“In general, it is negative for US agricultural markets. It will have a bearish influence on prices,” said Ole Hou, director of IKON COMMODITIES ADVICE SERVICES IN SYDNEY. “There are enough corn and soy supplies in the world so that China makes the change, it is more a problem for the United States.”
The most active soy contract in the Chicago Stock Exchange (CBOT) gave up 1.2%, AU $ 362.47, while corn lost 1.8%, AU $ S170.27. Wheat fell 2.1%, AU $ S197.22.
China quickly took reprisals on Tuesday against new tariffs in the United States, announcing increases between 10% and 15% to import tax that cover a series of American agricultural and food products and placing twenty -five US companies under export and investment restrictions.
The new 25% tariffs imposed by the president of the USA, Donald Trump, to imports from Mexico and Canada entered into force on Tuesday, along with a duplication of tariffs on Chinese products up to 20%. China is, by far, the largest soy importer in the world and Mexico is an important buyer of American soybeans, corn and wheat.
The cultivated soybean area in Brazil for the 2024/25 campaign was harvested by 50% on February 27compared to 39% of a week before and 48% at the same time last year, according to Agralian data.
Drought forecasts in India supported wheat prices, although news about a great harvest of Australian wheat limited profits. The raw material funds were net sellers of corn, soybean, soy oil, wheat and soybean flour contracts from CBOT on Monday, according to operators.
Source: Ambito
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