SINGAPORE: Chicago soybeans slid on Wednesday after scaling a near seven-month high in the previous session, although the decline was limited by easing worries over US tariff war with its key trading partners.
Corn dipped after two sessions of strong gains, while wheat hit a three-month high.
“On one side fears of an all-out trade war have eased for now,” a Singapore-based grains trader said.
“Corn and soybeans have additional support from weather issues in Argentina and Brazil.”
The most-active soybean contract on the Chicago Board of Trade (CBOT) gave up 0.6% to $10.68-1/4 a bushel, as of 0238 GMT, after climbing to its highest since late July on Tuesday.
Corn fell 0.1% to $4.94-1/4 a bushel, wheat added 0.2% to $5.78 a bushel, after hitting its highest since November earlier in the session.
Agricultural markets have recently been focused on the risk that anticipated tariffs against Canada, Mexico and China could hurt demand for US farm goods as all three nations are major importers.
But US President Donald Trump on Monday postponed tariffs against Mexico and Canada for a month, while China imposed limited retaliatory tariffs on US goods on Tuesday that did not include soybeans.
Some traders predict that China, the world’s biggest soybean importer, may boost purchases of the oilseed as part of trade negotiations.
Weather risks for South American crops, with drought in Argentina and excess rain in Brazil, continued to underpin corn and soy prices, traders said.
The US Department of Agriculture confirmed private sales of 132,000 metric tons of US corn to South Korea.
European Union soft wheat exports since the start of the 2024/25 season in July had reached 12.51 million tons by Feb. 2, compared with 12.18 million tons the previous week and down 37% from a year earlier, European Commission data showed on Tuesday.
Commodity funds were net buyers of CBOT soybean, corn, soymeal, soyoil and wheat futures contracts on Tuesday, traders said.
