GRAINS-Chicago corn, soy, wheat futures drop on US tariff fears

Updates at 0330 GMT

By Ella Cao and Mei Mei Chu

BEIJING, Feb 10 (Reuters) - Chicago Board of Trade futures for corn, soybeans and wheat dipped for a second straight session on Monday after U.S. President Donald Trump renewed warnings about imminent tariffs, raising concerns of retaliation that could harm U.S. crop sales.

The most active soybean contract Sv1 on the Chicago Board of Trade (CBOT) was down 0.17% at $10.48 a bushel by 0330 GMT. Corn Cv1 dropped 0.72% to $4.84.

On Sunday, Trump said he would introduce new 25% tariffs on all steel and aluminium imports and provide more details on the reciprocal tariff plan either Tuesday or Wednesday this week.

The market is down across the board on the back of the Trump steel tariffs, said Ole Houe of IKON Commodities in Sydney.

"Traders can now see a clearer path to lower economic growth in the U.S as well as globally. There were initial hopes that it may all be nothing, but it seems clear that the tariffs are here to stay and even grow," Houe said.

Earlier, Trump had set 25% tariffs on Canada and Mexico but delayed them. His levies against China prompted a measured response from Beijing, notably avoiding tariffs on agricultural products, which provided some relief to grain traders.

In South America, improving weather in dry growing areas of Argentina, the world's top exporter of soymeal and soyoil, and a larger-than-expected soybean harvest in top soybean supplier Brazil also pressured soy and corn prices.

Expected showers in Argentina's central and northern regions will likely offer some relief to crops that have been struggling with dry conditions.

Brazil's 2024/25 soybean crop is now projected at 174.88 million metric tons, up from the earlier estimate of 173.71 million tons, according to Safras & Mercado.

Traders also await the U.S. Department of Agriculture's monthly supply and demand reports due on Tuesday.

Meanwhile, wheat Wv1 dipped 0.64% to $5.79 a bushel, partly due to weak demand and abundant shipments from the Black Sea region, despite expectations for tighter supply.

Global wheat imports are likely to decrease this year, with slower purchases from major importers like China, which is capping wheat prices.

Traders are staying alert for cold weather that could damage crops in Russia and Ukraine, while Russian export restrictions may further slow wheat shipments.