SINGAPORE – Chicago soybean futures fell on Monday, falling further from last week’s three-month high as uncertainty over U.S. tariffs added pressure after the Supreme Court struck down President Donald Trump’s sweeping tariffs.
Wheat prices fell for the first time in four sessions, and corn prices fell.
The most active soybean trade on the Chicago Board of Trade (CBOT) fell 0.7% to $11.45 a bushel by 2:39 p.m. Japan time, rising last week to its highest level since mid-November.
Wheat fell 0.7% to $5.76-1/4 a bushel, and corn fell 0.3% to $4.38-1/2 a bushel.
Analysts said China may be unlikely to make another large purchase of U.S. soybeans that President Trump has touted for weeks after the Supreme Court lifted tariffs.
The justices ruled that President Trump overstepped his authority by imposing the tariffs under a law intended to apply during national emergencies. The decision raised questions about whether or how the administration would pursue new tariffs through other legal strategies.
U.S. Trade Representative Jamieson Greer said that none of the countries with which the U.S. has trade agreements share plans to withdraw, following the Supreme Court’s ruling that struck down most of President Trump’s tariffs.
For market players, the decision only adds further uncertainty to an already volatile market.
Supplies from Brazil, which had a record harvest, are currently dominating the market.
Trucks loaded with soybeans faced a 39-kilometre line to deliver soybeans to a grain terminal at the Amazon port of Militituba in Para state, according to late afternoon traffic data shared with Reuters by oilseed lobby Abiobe on Friday.
Major speculators reduced their net short positions in CBOT corn futures during the week ending February 17, according to regulatory data released on Friday.
The Commodity Futures Trading Commission Traders’ Weekly Commitment Report also showed that non-commercial traders, including hedge funds, have reduced their net long positions in CBOT wheat and increased their net long positions in soybeans.
