By Jamie Martin
Corn and soybean prices climbed on Thursday, nearing multi-month highs, as the U.S. government refrained from imposing new agricultural tariffs. The market found support from concerns about tightening corn and wheat supplies, as well as dry conditions in Argentina and the Black Sea region.
The Chicago Board of Trade (CBOT) reported corn rising 0.2% to $4.94-1/4 a bushel, while soybeans increased 0.6% to $10.63-3/4 a bushel. Wheat remained unchanged at $5.72-1/4 a bushel.
In the previous session, corn hit a 16-month high of $4.98-1/2, soybeans peaked at $10.79-3/4, a 6-1/2-month high, and wheat reached a 3-1/2-month high of $5.84-1/4. The market rally was driven by a lack of U.S. or Chinese counter-tariffs, as well as concerns over global crop supplies.
Argentina’s crop outlook improved slightly with recent rains. The Rosario grains exchange reported that rainfall on Tuesday and Wednesday benefited soybean crops in central Argentina. Additional showers are expected in mid-February in northern Argentina, supporting overall crop conditions.
Argentina plays a significant role in global agricultural trade, being the top exporter of soy oil and meal and the third-largest corn exporter.
Market participants are also monitoring China’s reduced wheat imports and the US government's halt on foreign food aid purchases, which has limited demand.
Meanwhile, Brazil is expected to produce a record soybean harvest of 170 million metric tons, according to Rabobank, which is 15 million tons more than in 2023/24. This expectation has added pressure to soybean prices despite short-term gains.
“Showers will also reach dry spots in northern Argentina in mid-February,” stated Commodity Weather Group, emphasizing the improved weather conditions.
Although market sentiment remains positive for corn and soybeans, the impact of Brazil’s upcoming harvest and evolving global trade policies will shape future price trends.
Photo Credit: gettyimages-studio2013
Categories: National