GRAINS-Soybeans ease on Trumps tariffs threat, set for second monthly gain

Recasts, adds quote, updates prices

By Naveen Thukral

SINGAPORE, Jan 31 (Reuters) - Chicago soybeans slid for a second straight session on Friday, under pressure from U.S. plans to impose tariffs on Canadian and Mexican imports, although the market is set for a second monthly gain as dry weather threatens to reduce yields in Argentina.

The most active soybean contract on the Chicago Board of Trade (CBOT) Sv1 slid 0.3% at $10.40-3/4 a bushel, as of 0421 GMT. Corn Cv1 fell 1.3% to $4.84 a bushel and wheat Wv1 lost 0.8% to $5.62-1/4 a bushel.

Corn and wheat are also set to end the first month of 2025 on a positive note.

"While soybean supply concerns have grown, the overall outlook remains positive," according to a report from BMI, a unit of Fitch Solutions.

"In contrast, the corn market presents a much tighter supply picture."

Participants in agricultural markets are waiting to see whether U.S. President Donald Trump will follow through on threats to impose tariffs on Mexico and Canada. Those worries are exacerbated by the potential for retaliatory tariffs from the two countries.

Soybeans have gained around 3% in January, on track for the second consecutive monthly rise. Meanwhile, corn has advanced 5.5%, gaining for a third straight month and wheat is up almost 2% this month.

Disappointing rainfall in Argentina and an outlook for continued dryness in the weeks ahead are likely to support soybeans and corn futures.

Weekly U.S. soybean export sales came in below analysts' expectations.

Wheat prices have been bolstered by lowered forecasts for Russian exports and concerns that frigid weather may have harmed the U.S. winter crop.

Consultancy Sovecon said on Thursday that it lowered its forecast for Russian wheat export in 2024/2025 to 42.8 million metric tons, from 43.7 million.

In India, the risk to crops comes from forecasts of above-average temperatures in February, with key wheat- and rapeseed-growing states likely to see maximum temperatures up to 5 degrees Celsius above average on some days.

Commodity funds were net sellers of CBOT corn, soybean and soymeal futures contracts on Thursday, traders said. Funds were net buyers of soyoil and wheat futures contracts. COMFUND/CBT