CANBERRA- Chicago corn, wheat and soybean futures rose on Wednesday as traders waited to see if US President Donald Trump would follow through on threats to impose 25 percent tariffs on imports from Canada and Mexico this weekend.
Corn and wheat were supported by expectations of tighter supplies, while soybeans shrugged off pressure from a massive harvest ramping up in Brazil.
The most active corn contract on the Chicago Board of Trade (CBOT) was up 1.1 percent at $4.90-3/4 a bushel, while CBOT soybeans rose 0.8 percent to $10.53 a bushel and wheat added 0.9 percent to $5.50-1/4 a bushel.
All three contracts are moving back towards highs reached last week – a 15-month high of $4.95 for corn, a six-month peak of $10.76-1/4 for soybeans and a six-week high of $5.67 for wheat.
Trump still plans to make good on his promise to issue tariffs on Canada and Mexico on Saturday, White House spokeswoman Karoline Leavitt said on Tuesday, adding that Trump also is still “very much” considering fresh tariffs on China.
Tariffs could lead to retaliation and trade wars, as well as trade deals.
“The big question left for the bulls is will there be a trade agreement with China that favors US agricultural commodities? If so, when will it happen, and what will be the scope of potential demand,” StoneX analyst Arlan Suderman wrote in a note.
Dry conditions in Argentina are likely to shrink the country’s corn crop and lift corn and wheat prices, said Dennis Voznesenski, an analyst at Commonwealth Bank in Sydney.
