Market News

Soybeans tumble following retaliatory tariff announcement

Soybeans closed sharply lower as the market was under significant pressure following China’s announcement of retaliatory tariffs.  May contracts closed 34 and 1/2 cents lower at $9.77.  Like many of the commodities, the immediate impacts will be unknown, but there are concerns that a prolonged trade disruption would have a significant impact on soybean demand and soybean prices.  Soybean meal and soybean oil were also sharply lower.  The market also continues to monitor the weather of crop development in South America.

Corn was mixed on spread trade. The market was focusing on some good news — products already included in the US-Mexico-Canada Agreement are excluded from the tariffs on Mexico and Canada.  May contracts finished Friday up 2 and 3/4 cents at $4.60 and 1/4. U.S. corn demand continues to exceed expectations, which could be supportive to prices.  Corn is also keeping an eye on pre-planting weather conditions as there have been heavy rains in parts of the Corn Belt and Ohio Valley.  In South America, corn harvest is underway in Argentina and the forecast for key growing areas in Brazil are warm and dry.  There is some precipitation in the mid-term weather outlook.

The wheat complex was also lower.  The market had to choose whether to follow corn or soybeans, and in the end, the complex went with soybeans and closed lower.  May wheat in Chicago closed 7 cents lower at $5.29.  Kansas City Wheat was 11 and 1/2 cents lower at $5.57 and 1/2, and May contracts in Minneapolis were 6 and 3/4 cents lower at $5.84 and 1/2.  Wheat continues to monitor weather throughout the U.S.  Heavy rains have fallen from Texas through the Ohio Valley. However, but the forecast for the Southern Plains remains hot and dry – which could cause crop conditions to continue to decline.