GRAINS-Corn, soybeans ease after rally; US tariff relief limits decline

By Naveen Thukral

SINGAPORE, March 7 (Reuters) - Chicago corn and soybean futures slid on Friday, giving up gains made in the last two sessions, although the suspension of U.S. tariffs on Mexico and Canada limited the downside in prices.

Wheat fell with additional pressure from expectations of a bumper harvest in top consumer China.

"There has been some recovery in prices after the announcement on Mexico and Canada, but we still have China tariffs to deal with," said one trader in Singapore at an international trading company.

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 fell 0.1% to $10.26 a bushel as of 0324 GMT and corn Cv1 lost 0.2% to $4.63-1/4 a bushel. Wheat Wv1 gave up 0.7% to $5.50-1/4 a bushel.

On Thursday, U.S. President Donald Trump suspended the tariffs he imposed this week on most goods from Canada and Mexico, the latest twist in a fluctuating trade policy.

Trump imposed 25% tariffs on imports from Mexico and Canada on Tuesday and fresh duties on Chinese goods, fuelling worries that an expanding trade war would threaten demand for U.S. products.

Mexico was the largest buyer of American corn and wheat in 2024 and the No. 2 destination for U.S. soybeans after China, and the tariff threats raised fears of trade disruptions, sending grain futures tumbling earlier this week.

China, by far the world's biggest soybean importer, bought 13.61 million metric tons of soybeans in January and February, according to customs data issued on Friday.

For the week, CBOT corn slipped 1.3%, falling for the second week in a row. Soybeans lost 0.04% and wheat eased 1%.

Market players are awaiting the U.S. Department of Agriculture's (USDA) next monthly supply/demand report due on March 11.

The report will consider trade policies in place when the forecasts for grains and soybeans are issued, an agency official said on Thursday, as Trump suspended the tariffs on Canada and Mexico.

China is expecting to produce an abundant wheat harvest this year, a COFCO International executive said, with rising domestic supplies likely to reduce the need for imports.

Commodity funds net bought CBOT corn, soybean, soymeal, wheat and soyoil futures contracts on Thursday, traders said. COMFUND/CBT