Chicago Corn Futures Decline as US Tariffs Heighten Trade Tensions

Chicago corn futures dropped nearly 2 percent at the start of the trading week, reaching their lowest level in three weeks. The decline followed US President Donald Trump’s decision to impose tariffs on Canada, Mexico, and China, raising fears of a broader trade conflict. Analysts and traders believe that if retaliatory measures are imposed, American agricultural exports could suffer further setbacks.

Corn futures on the Chicago Board of Trade (CBOT) fell 1.80 percent to USD 0,19 per kg, marking their lowest point since January 13. Other grains also followed a downward trend, with wheat futures declining 1.10 percent to USD 0,21 per kg, while soybean futures dropped 0.17 percent to USD 0,38 per kg.

Retaliation Expected as Trade Tensions Rise

Trump's tariffs, which became effective on the second trading day of the week, include a 25 percent tariff on most products from Mexico and Canada and a 10 percent tariff on Chinese goods. Market analysts predict that affected countries will likely respond with retaliatory tariffs on American agricultural products, further impacting global trade.

One analyst noted that business flow in the agriculture sector could slow significantly if major trading partners impose countermeasures. He also mentioned that if tariff exemptions are granted selectively, the uncertainty around the timing and duration of the tariffs could increase market volatility.

Global Response to US Tariff Hikes

Canadian Prime Minister Justin Trudeau has confirmed that Canada will introduce countermeasures, while Mexican President Claudia Sheinbaum has instructed her economy minister to prepare retaliatory tariffs. However, China’s Commerce Minister has yet to disclose specific plans regarding a response to the tariffs.

With growing uncertainty in the global grain market, traders are closely watching how these tariffs will affect US agricultural exports in the coming weeks. If major buyers like China, Canada, and Mexico impose restrictions, the downward pressure on corn, wheat, and soybean futures could intensify further.

Conclusion: Uncertainty Looms Over Global Agriculture Markets

As trade tensions escalate, US farmers and exporters face growing challenges in the global market. The recent drop in corn, wheat, and soybean futures reflects growing concerns over the impact of tariffs on international trade. Market participants will closely monitor how Canada, Mexico, and China respond in the coming days, as further trade restrictions could disrupt agricultural exports and push prices even lower.





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