Corn is trading lower this morning along with the rest of the grain complex after China announced 34% tariffs on all US imports in retaliation to President Trump’s tariff plan. Equities are sharply lower again today.
A key factor in the US new tariff plan was that there were no additional tariffs added to Mexico or Canada, and because of this, corn futures were able to come off their lows yesterday for a nearly even close. China has not bought US corn this year.
Yesterday’s export sales report saw corn sales at 1,338k tons which compared to 1,040k a week ago and 959k tons a year ago at this time. Top buyers were South Korea, Japan, and Mexico.
Soybeans are trading sharply lower again this morning following China’s tariff announcement, and soybeans have been the hardest hit by the tariffs as China is typically the top buyer of US beans. Both soybean meal and oil are trading lower.
Soybean oil is down over 2 cents as crude oil plummets another 5 dollars a barrel in addition to yesterday’s losses. OPEC has said they would increase output by over 400,000 barrels a day next month.
Yesterday’s export sales report saw soybean sales at 414k tons which compared to 317k last week and 194k tons a year ago at this time. The top buyers were China, Taiwan, and Indonesia.
All three wheat classes are trading lower again today as tariff news continues to weigh on commodities. Chicago wheat is posting the majority of losses with KC wheat not far behind. Weather remains bullish, but is overshadowed by tariff news.
Yesterday’s export sales report saw wheat sales above expectations at 435k tons which compared to 112k last week and 278k a year ago. Top buyers were Taiwan, Ecuador, and Japan.
The USDA ag attaché in India sees the 25/26 wheat crop at 115 mmt which would be a third year of record production. Planted acreage is expected to be higher and growing conditions expected to be optimal.
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