GRAINS-Soybeans climb to highest since July as tariff worries ease

ReutersFeb 4, 2025 9:00 PM

Soybeans avoid hit from Chinese tariffs on US goods
US suspends planned tariffs against Mexico, Canada
Weak dollar makes US crops look attractive to importers

Adds closing prices in paragraphs 9-10

By Tom Polansek

CHICAGO, Feb 4 (Reuters) - Chicago Board of Trade soybean futures jumped on Tuesday to their highest level since July on easing concerns that trade disputes will disrupt U.S. agricultural exports, analysts said.

Wheat futures Wv1 reached their highest level since November, while corn prices Cv1 hovered near an October 2023 high reached last week.

Traders have recently been focused on the risk that anticipated tariffs against Canada, Mexico and China could hurt demand for U.S. farm goods as all three nations are major importers.

But U.S. President Donald Trump on Monday postponed tariffs against Mexico and Canada for a month, while China imposed limited retaliatory tariffs on U.S. goods on Tuesday that did not include soybeans.

Some traders predict that China, the world's biggest soybean importer, may boost purchases of the oilseed as part of trade negotiations.

"The general feeling is that China is not going to fight too hard on a trade war, or it's going to get resolved very quickly," said Ted Seifried, chief market strategist at Zaner Ag Hedge.

Relief over the suspension of planned U.S. tariffs against Mexico, the biggest importer of U.S. corn, spurred a rebound in CBOT grains on Monday.

Technical buying supported Tuesday's gains, traders said.

Most-active corn futures settled up 5-3/4 cents to $4.94-1/2 a bushel, while wheat rose 10-1/4 cents to $5.77 a bushel.

Soybean futures Sv1 closed 16-3/4 cents higher at $10.75 a bushel. Soymeal futures SMv1 also rallied, though soyoil BOv1 eased as the delay of U.S. tariffs against Canada allowed for continued competition from imports of Canadian canola.

Weather risks for South American crops, with drought in Argentina and excess rain in Brazil, continued to underpin corn and soy prices, traders said.

Weakness in the dollar also helped boost prices, as it makes U.S. farm products look more attractive to global buyers, they said.

The U.S. Department of Agriculture confirmed private sales of 132,000 metric tons of U.S. corn to South Korea.

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