CBOT grains fall on dollar gains as traders await USDA data
Trump's tariff plans causing turmoil
9 January 2025
2 minute read
By: Chicago corn and wheat futures dipped on Wednesday as the dollar jumped on uncertainty over US President-elect Donald Trump's tariff plans, and as investors squared positions and awaited supply and demand data from the US Department of Agriculture, reported Reuters.
CBOT wheat was down 6-1/2 cents at $5.36 per bushel at 12:26 a.m. CST (1826 GMT) and soybeans were down 3-1/2 cents at $9.93-3/4 a bushel. CBOT corn eased 3-3/4 cents to $4.54-1/4 a bushel.
The US dollar index rose for a second day to approach last week's two-year peak, as a report emerged that Trump is considering declaring a national economic emergency to provide legal justification for a series of universal tariffs.
A higher dollar makes US grain more expensive overseas and the currency's strength, along with fears of tariff retaliation, has underscored concerns about tepid export demand for US grain.
Traders also awaited a US government crop report due on Friday for further direction on grain and oilseed supplies and demand.
Fund buying in corn is up, said Jim Gerlach, president of A/C Trading, so "there's some caution there when managed money is getting long in front of a major crop report."
Soyoil remained firm as Indonesia announced it is clamping down on exports of used cooking oil, which competes with soyoil as a biofuel feedstock, he noted.
Still, said Gerlach, "Nobody knows how these limits are going to work, how much it's going to stop those exports."
Soybeans and corn were also pressured by weather forecasts in leading producers Brazil and Argentina.
Heat and dryness is expected to peak next week in crop-growing areas of both countries, according to Commodity Weather Group, before rains bring relief over the next 11 to 15 days.
