GRAINS-Corn, soybeans sag; soyoil rallies amid Trump tariff news

Updates with U.S. trading

By Renee Hickman

CHICAGO, Jan 31 (Reuters) - U.S. corn and wheat futures fell on Friday on month-end positioning while soybeans turned lower and soybean oil jumped 2% in volatile trade amid ongoing uncertainty around U.S. President Donald Trump's plans for tariffs.

As of 12:46 p.m. CST (1846 GMT), Chicago Board of Trade benchmark corn futures CH25 were down 7-1/2 cents at $4.82-3/4 per bushel and wheat Wv1 was down 8-1/4 cents at $5.58-1/4 a bushel.

The most-active CBOT soybean contract Sv1 was down 2 cents, or 0.2%, at $10.42 a bushel while soyoil BOv1 was up 1.01 cents, or 2.3%, at 45.99 cents per pound, after gyrating in a wide, 2-cent trading range.

Corn and soybeans futures were pressured and soyoil futures briefly turned lower on news that tariffs were expected to be implemented on Canada and Mexico by the Trump administration on March 1.

But CBOT soyoil futures surged back after the White House said that the United States will impose 25% tariffs on Canada and Mexico, along with 10% on China, on Saturday.

"Trading grains over the next four years will turn more grey hair bleach white, with the headline stress," said Terry Reilly, senior agricultural strategist with Marex.

Analysts have warned that the tariffs Trump has threatened could spark retaliation from impacted countries and trade wars, hurting the markets for U.S. agricultural exports.

Trump has said that the tariffs would take effect if Canada and Mexico do not stem the flow of illegal migrants and the drug fentanyl into the United States.

Ahead of Friday's tariff developments, soybean futures had been firming along with soyoil, said Karl Setzer, partner at Consus Ag Consulting, with Canada's canola oil <RSc1> under threat of tariffs.

Uncertainty about tariffs shifted attention away from the weather in South America, which has given corn and soybean futures support in recent days, as dryness plagued Argentina and rains slowed the harvest in Brazil.