Chicago soybean futures hit a three-week high at $10.24 per bushel, spurred by domestic demand from biofuels policy discussions, but Brazil’s anticipated record soybean harvest and U.S. tariff concerns limited gains. Corn prices declined due to higher planting expectations and fears of retaliatory tariffs, while wheat prices fell amid favorable weather and potential increases in exports from Russia and Ukraine.
Chicago soybean futures have reached their highest level since March 10, driven by anticipated domestic demand resulting from biofuels policy discussions. The most active soybean contract on the Chicago Board of Trade (CBOT) increased by 0.15% to $10.24 per bushel, representing a third consecutive session of gains as reported at 0207 GMT.
The Trump administration has reportedly urged oil and biofuels producers to negotiate on the next phase of the national biofuels policy. Concurrently, Brazil’s soybean crop for the 2024-2025 period is projected to be a substantial 172.1 million tons, supported by strong export demands, particularly from China.
Traders remain cautious, monitoring forthcoming reports from the U.S. Department of Agriculture (USDA) and the implications of April 2 tariffs. President Trump indicated that the upcoming reciprocal tariffs would affect all nations rather than just those with significant trade imbalances.
In related markets, corn prices fell by 0.44% to $4.51 per bushel due to expectations of increased planting and tariff concerns, which could elicit retaliatory measures from major agricultural partners. Analysts have estimated that U.S. corn planting for 2025 may rise to 94.361 million acres, compared to 90.594 million acres the previous year.
Moreover, wheat futures decreased by 0.19% to $5.27 per bushel, as favorable weather conditions in the U.S. and Russian wheat regions, along with smoother export prospects from Russia and Ukraine due to a U.S.-supported ceasefire agreement, exerted downward pressure. Traders noted that commodity funds were net buyers of CBOT corn, soybean, and soyoil futures contracts on Friday, while being net sellers of wheat and soymeal futures contracts.
In summary, Chicago soybean futures have reached a notable peak, influenced by biofuels discussions and Brazil’s impressive soybean forecast. Despite this, concerns regarding U.S. tariffs and the burgeoning supply from Brazil temper market enthusiasm. Additionally, fluctuations in corn and wheat prices reflect broader agricultural market dynamics in the face of potential trade repercussions and favorable weather conditions.
Original Source: www.tradingview.com
