GRAINS-Corn, soy, wheat climb on tariff exemption for Mexico

By Julie Ingwersen

CHICAGO, March 6 (Reuters) - U.S. corn futures surged about 2% on Thursday on easing trade tensions after U.S. President Donald Trump said Mexico would not be required to pay tariffs on any goods that fall under a North American trade pact until April 2.

Soybeans and wheat followed the firmer tone, with a weaker dollar .DXY adding support to agricultural markets by making U.S. goods more competitive globally.

Trump had imposed 25% U.S. tariffs on imports from Mexico and Canada on Tuesday along with fresh duties on Chinese goods, adding to worries about the impact on inflation and growth.

Mexico was the largest buyer of American corn and wheat in 2024 and the tariff threats raised fears of trade disruptions, sending grain futures tumbling earlier this week.

Thursday's exemption eased concerns.

"Demand is back on with our largest trading partner in corn and pork," said Don Roose, president of Iowa-based U.S. Commodities.

As of 1:05 p.m. CST (1905 GMT), Chicago Board of Trade May corn CK25 was up 9 cents at $4.64-3/4 per bushel. May soybeans SK25 were up 17 cents at $10.28-3/4 a bushel and CBOT May wheat WK25 was up 6-1/2 cents at $5.54-3/4 a bushel.

Trump said on social media platform Truth Social that Mexico would not be required to pay tariffs on any goods that fall under the United States-Mexico-Canada Agreement on trade until April, but made no mention of a reprieve for Canada despite his commerce secretary saying a comparable exemption was likely.

Investors are concerned about a broader trade war developing compared with the U.S.-China tariff tussle during Trump's previous term.

China's new tariffs on U.S. farm goods are poised to reshape global trade flows, prompting the world's top agricultural importer to source more meat, dairy and grains from countries in South America, Europe and the Pacific, analysts said.