US import taxes dampen trend in Chicago

Wheat and soybean prices in Chicago have dropped due to the impact of tariffs imposed by the Trump administration, including a significant increase in duties on Chinese goods. Despite tariffs on Asia and the EU, exemptions for Mexican and Canadian products have been maintained, supporting corn exporters. Despite expected continued imports of Canadian canola oil, soybean oil prices have fallen. Meanwhile, US international wheat sales have surpassed expectations, reaching 340 kt last week.

Wheat and soybean prices suffered significant losses this Thursday evening in Chicago, particularly sharply in light of the decline in the Dollar Index, which was favorable to US prices. The market was unable to withstand the consequences of the tariffs announced by Donald Trump on Wednesday evening, including a 20% to 54% increase in customs duties on products from China. This new surcharge further worsens the outlook for US exports to the Middle Kingdom. The United States also imposed tariffs on numerous economic zones, including a large part of Asia and the European Union. However, the White House also decided to maintain the duty exemption on many Mexican and Canadian products, thus reassuring corn exporters, for whom Mexico represents a major market. Soybean oil, on the other hand, gave back a large portion of its recent gains in anticipation of continued US imports of Canadian canola oil. It should also be noted that weekly US international wheat sales exceeded market ...