BEIJING: Chicago corn and soybeans rose on Thursday, recouping some of the previous session’s losses as high temperatures in South America hit output, although concerns over U.S President Donald Trump’s threats of more tariffs kept traders on edge.
Wheat extended gains to a fifth session to trade near its highest close since October, underpinned by worries that cold weather in Russia and the U.S. could damage the crop.
The most-active corn contract on the Chicago Board of Trade (CBOT) climbed 0.6% to $5.01 a bushel by 0309 GMT, also lifted by strong U.S export demand. Soybeans gained 0.53% to $10.37-4/8 a bushel.
The South American corn crop is the only other topic discussed as tariffs are in the background, Bevan Everett, a risk management consultant with commodities brokerage StoneX, said in a note.
Temperatures in Argentina are forecast to reach above 35 degrees Celsius (95°F) in the coming days and would affect almost the country’s entire agricultural area, according to the Buenos Aires Grains Exchange on Wednesday.
In Brazil, a drought has delayed corn planting and slashed the size of its record soybean harvest. Brazilian soybean farmers will reap 171.3 million metric tons of soybeans in the 2024/25 season, less than the 172.4 million tons forecast in January, agribusiness consultancy Agroconsult said on Wednesday.
Trump said on Wednesday he would announce tariffs related to lumber, cars, semiconductors and pharmaceuticals “over the next month or sooner, without providing further details.
Minutes of the Federal Reserve’s last policy meeting showed on Wednesday that Trump’s initial policy proposals raised concerns about higher inflation and affirmed a continued pause on rate cuts.
CBOT wheat rose 0.33% to $6.08 a bushel.
“Global wheat supplies are already forecast near multi-year lows, with tightening of the wheat-corn spread suggesting wheat feed demand could increase,” Bergman Grains Research said in a note.
Jordan’s state grain buyer has issued an international tender to buy up to 120,000 tons of milling wheat, which can be sourced from optional origins, European traders said on Wednesday. (Reporting by Mei Mei Chu; Editing by Rashmi Aich and Subhranshu Sahu)