Chicago wheat futures eased on Tuesday as traders weighed improving U.S.-Russia diplomatic talks against worsening crop conditions, while corn and soybeans declined ahead of key USDA planting data and tariff retaliation risks.
Wheat:
The most-active CBOT wheat contract fell 3.5 cents to $5.65/bushel, retreating from Monday’s highs driven by U.S. Plains dust storms.
Kansas winter wheat conditions worsened, with 48% rated good-to-excellent (down from 52% last week), raising concerns about drought impacts.
Prices faced pressure after U.S. President Donald Trump and Russia’s Vladimir Putin agreed to a ceasefire on attacks against Ukrainian energy infrastructure, potentially easing Black Sea export constraints.
Corn & Soybeans:
Corn dipped 2.25 cents to $4.58¾/bushel, with traders cautious ahead of the USDA’s March 31 planting report, which may show expanded acreage.
Soybeans fell 2.75 cents to $10.12¾/bushel, pressured by fears of retaliatory tariffs from major buyers like Mexico.
Market Drivers:
Geopolitical Shift: A Ukraine ceasefire could unlock Russian and Ukrainian grain exports, easing global supply tightness.
Tariff Risks: U.S. tariffs on metals and goods threaten to disrupt agricultural trade flows, particularly with Mexico.
Supply Dynamics: U.S. wheat export inspections topped expectations, signaling competitive pricing amid Russia’s export slowdown.