PARIS/SINGAPORE: Chicago corn, wheat and soybeans set fresh multi-month highs on Wednesday, helped by a falling dollar and relief that US tariffs did not appear to be triggering a trade war with major economies including China.
Adverse weather in South America was also lending support, though chart resistance was capping prices.
The most-active corn contract on the Chicago Board of Trade (CBOT) was up 0.3% at $4.96 a bushel by 1210 GMT. It earlier reached its highest since October 2023 at $4.98-1/2, just above a previous 15-month top struck last week.
CBOT soybeans were down 0.2% at $10.72-1/2 a bushel. They turned lower after hitting the highest since late July, surpassing a previous six-month top from Tuesday.
CBOT wheat added 0.7% to $5.80-3/4 a bushel, after hitting its highest since late October, beating a three-month peak from Tuesday.
Agricultural markets had feared that tariffs proposed by US President Donald Trump against Canada, Mexico and China could hurt demand for US farm goods in a tit-for-tat trade battle.
But Trump on Monday postponed tariffs against Mexico and Canada for a month, while Beijing announced limited retaliatory tariffs on US goods on Tuesday that did not include crops like soybeans, the main US agricultural export to China.
Some traders predict that China, the world’s biggest soybean importer, may boost purchases of the oilseed from the United States as part of trade negotiations.
“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.”
Drought in Argentina and excess rain in Brazil, which is slowing soybean harvesting and subsequent corn planting, continued to underpin corn and soy prices, traders said.
The dollar index slipped for a second day, making US commodities cheaper overseas.
Source: Brecorder
