Soybean Futures in Chicago Decline Due to New US Tariffs and Recession Fears
On Thursday, spot prices for soybeans rose at several processing plants in the U.S. Midwest; however, soybean futures on the Chicago commodity exchange fell by nearly 2%. This, in turn, deterred farmers from selling oilseeds.
This is reported by AgroReview
The price of soybeans increased by 5 cents per bushel at processing plants in Morristown and Decatur, Indiana, as well as in Council Bluffs, Iowa, as processors sought to reduce soybean supplies.
Concerns About Tariffs and Their Consequences
According to analytical data, the decline in soybean futures was a result of fears that new U.S. tariffs could provoke retaliatory measures from other countries, harming American exports. President Donald Trump announced a 10% base tariff on most imported goods, leading to a drop in stocks and oil prices.
“This is psychologically negative,” noted Rich Nelson, chief strategist at brokerage firm Allendale.
It was also noted that China, the largest importer of soybeans, has already imposed tariffs on American agricultural products in response to Trump’s previous tariffs, indicating potential negative consequences for American exporters.
Wheat and Corn Markets
Wheat futures on the Chicago commodity exchange also fell due to concerns about possible retaliatory actions from other countries. Traders eagerly awaited potential tariffs from China, Japan, and the European Union. At the same time, the decline of the dollar limited losses, making American goods more competitive.
U.S. wheat export sales over the past week amounted to more than 340,000 metric tons. Analysts are worried about weather conditions, as drought and frost could threaten the wheat crop.
Corn futures remained virtually unchanged as traders awaited reactions from other countries to Trump’s new import tariffs. The U.S. Department of Agriculture reported that corn export sales for the week totaled approximately 1.2 million tons.
“All attention is now focused on the anticipated set of retaliatory tariffs, especially from China, Japan, and the EU,” experts noted.
The further development of the grain and oilseed market in Ukraine and the Black Sea region will be discussed at the 23rd International Conference BLACK SEA GRAIN.KYIV, which will take place on April 24 in Kyiv.