FX.co ★ Soybeans Remain Under Pressure Amid Tariff Concerns

Soybean futures currently hover around $10 per bushel, pressured by fears regarding U.S. import tariffs that could potentially decrease demand for American grains and oilseeds. This concern is compounded by the prediction of record global stocks this year. U.S. President Donald Trump's plan to implement extensive reciprocal tariffs with multiple trade partners, set to commence on April 2, could impact significant agricultural importers, including Canada and Mexico, whose tariffs have previously been on hold. Tensions between the U.S. and China have already dampened soybean exports as China responded by increasing tariffs on U.S. agricultural products and turning to Brazil for soybean purchases, benefiting from Brazil's bountiful harvest. The harvest in Brazil is advancing swiftly, with approximately 74% of the expected 2024/2025 area already harvested, an increase from nearly 69% the previous year. Market participants are also anticipating the USDA's grain stocks and prospective planting reports, slated for release on March 31, which will provide estimates for U.S. farmers' planting intentions in 2025.