Soybeans seen as most affected among U.S. grains from Trump’s latest tariffs

Soybeans likely will feel the strongest fallout from tariffs, traders determined Thursday after spending the session processing what President Trump’s new “reciprocal” tariffs will mean for U.S. grains, sending soybean futures sharply lower while wheat and corn finished nearly flat.

“China is a major importer of U.S. soybeans and while their buying tends to shift to Brazil at this time of year, demand going forward could be heavily impacted,” Tomm Pfitzenmaier of Summit Commodity Brokerage wrote.

The additional 34% tariff levied on Chinese goods is expected to cut into demand for U.S., but the timing of the announcement means that the impact may not be immediate, according to analysts.

“China is out of the market for U.S. beans right now anyway,” StoneX analyst said, noting that China at this time of year is more interested in procuring Brazilian soybeans, as Brazil’s harvest of its soybean crop nears its end.

Analysts also said grains are a ripe target for counter-tariff retaliation, leaving agricultural futures particularly vulnerable.

“I’m afraid some countries will show more aggressive measures against the U.S. that could spur another round of selling over the coming weeks,” Brady Huck of Advance Trading said. “That’s my fear for American farmers.”

Some traders noted that Canada and Mexico avoiding fresh tariffs could be a sign of improving negotiations between the U.S. and its neighbors.

On the CBOT, soybeans (S_1:COM) for May delivery settled -1.7% to $10.12 1/2 per bushel, while wheat (W_1:COM) for May delivery closed -0.4% to $5.37 per bushel and corn (C_1:COM) for May delivery finished +0.2% at $4.58 1/2 per bushel.

The American Farm Bureau Federation, the leading farm lobby, said the tariffs threaten U.S. farmers’ competitiveness and could cause long-term damage by eroding market share.

“We share the administration’s goal of leveling the playing field with our international partners, but increased tariffs threaten the economic sustainability of farmers who have lost money on most major crops for the past three years,” group president Zippy Duvall said.

Tags: U.S., futures, Market, demand, tariffs, China, Brazil, soybeans, Grains