Chicago Soybean Prices Rise Amid Trade War Concerns

SINGAPORE: On Friday, soybean prices in Chicago saw an increase, fueled by investors seeking undervalued assets. However, the market is still poised for a weekly decline due to the ongoing trade disputes between the United States and China.

Wheat prices also experienced a slight uptick, although they are on track for their second consecutive week of losses, influenced by more favorable weather conditions in the US Plains.

Global Supply and Demand Dynamics

According to a Singapore-based grain trader, the extensive global supply of soybeans will likely put a ceiling on price increases. This is exacerbated by reduced demand for US soybeans resulting from the trade conflict with China.

The most active soybean contract on the Chicago Board of Trade (CBOT) increased by 0.6% to reach $10.56-1/4 a bushel as of 0319 GMT. Similarly, wheat prices rose by 0.7% to $5.34-3/4 a bushel, and corn prices edged up by 0.2% to $4.73 a bushel.

Impact of US-China Trade Tensions

The trade war initiated by US President Donald Trump continues to exert downward pressure on commodity prices. Recent reports indicate that Washington is attempting to engage China in discussions regarding its 145% tariffs, as stated by a media outlet linked to Chinese state media.

Week-to-date, soybeans have decreased by 0.3%, corn has fallen by 2.6%, and wheat has dropped by approximately 2%.

Global Market Factors

Soybean prices in Brazil, the world’s leading exporter of the oilseed, have recently declined, intensifying competition for US supplies in the international market, as noted by traders.

In Argentina, another significant global supplier, farmers executed their largest single-day soybean sales of 2025 this week, as per the Rosario grain exchange.

USDA Report and Export Sales

Following the close of trading on Thursday, the US Department of Agriculture (USDA) reported that processors crushed 6.2 million metric tons, or 206.6 million bushels, of US soybeans in March.

Analysts had anticipated an average of 6.165 million short tons, or 205.5 million bushels, based on a survey. US soybean export sales for 2024-25 totaled 428,200 tons in the week ending April 24, marking a 27% increase from the previous four-week average, according to the USDA.

Analysts had projected figures between 150,000 and 600,000 tons. Weekly US corn export sales amounted to 1 million tons, a 13% decrease from the prior four-week average, aligning with analysts’ expectations.

Commodity Fund Activity

On Thursday, commodity funds emerged as net buyers of CBOT soybean, soyoil, and wheat futures contracts, according to traders. Conversely, these funds were net sellers of corn and soymeal futures.