GRAINS-Soybean, corn near 2-month low as Trump tariffs loom

SINGAPORE, March 4 (Reuters) - Chicago soybeans and corn lost more ground on Tuesday, with both commodities dropping to their lowest since early January ahead of U.S. tariffs on key trading partners which are likely to disrupt agricultural flows.

Wheat edged higher on support from dry weather in India.

FUNDAMENTALS

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 fell 0.8% to $10.03-1/2 a bushel, as of 0136 GMT, while corn Cv1 gave up 0.8% to $4.52-1/2 a bushel. Wheat Wv1 added 0.1% to $5.48-1/2 a bushel.

U.S. President Donald Trump said that 25% tariffs on goods from Mexico and Canada will definitely take effect on Tuesday, raising fears of a trade war in North America and sending financial markets reeling.

China is targeting American agricultural exports as it prepares countermeasures against fresh U.S. import tariffs, China's state-backed Global Times reported.

While China is by far the world's largest soybean importer, and Mexico is a major buyer of U.S. soybeans, corn and wheat.

Brazil's cultivated soybean area for the 2024/25 season was 50% harvested by February 27th, up from 39% a week earlier and 48% by the same time last year, AgRural data shows.

Forecasts of dryness in India supported wheat prices although news of a large Australian wheat crop limited gains.

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

MARKET NEWS

U.S. stocks ended down sharply Monday, with the S&P 500 posting its biggest daily percentage drop since December 18 after U.S. President Donald Trump said 25% tariffs on Canada and Mexico will go into effect on Tuesday, while the euro strengthened after European leaders agreed to draw up a Ukraine peace plan. MKTS/GLOB

DATA/EVENTS (GMT)

1000 EU Unemployment Rate Jan