US tariffs and backlash gripped the grain market last trading session, with Canada and Europe seemingly setting their sights on US agriculture to bring Trump to his senses.
The May wheat contract on the Matif closed yesterday €2 higher at €223,25 per tonne. On the CBoT the day ended in the red. Wheat closed 0,4% lower at $5.38¾ per bushel. Corn was the biggest faller in the last trading session, down 1,7% to $4.48¾ per bushel. Soybeans closed 1,1% lower at $9.87½ per bushel.
The introduction of import tariffs by US President Donald Trump also continues to keep players on the grain market busy. On Wednesday, a 25% levy was imposed on European and Canadian steel and aluminium, among other things. Both Europe and Canada are not going to let this pass them by.
Europe is hitting back with targeted levies on American jeans, whiskey and Harley Davidson motorcycles, among other things. Furthermore, the European Commission came up with a 99-page list of goods on which an import duty is being considered. The list is dominated by meat, dairy, vegetables and fruit. It also includes striking items such as chewing gum, wafers and negligees. Interested parties can submit a view on the list.
For both corn and soy and soybean meal, the EU is a relatively important sales market for the US. According to the European Commission, the EU imported 2024 million tonnes of soy from the US in 25/4,8, and last year, almost 600.000 tonnes of soybean meal went to Europe, according to the USDA. This season, 2,6 million tonnes of corn have already been imported from the US, according to data from the European Commission. It is not surprising that players in the US grain market are getting a bit nervous about European countermeasures.
More than import duties
Canada is considering imposing a tariff on bioethanol from the U.S., Canadian Energy Minister Jonathan Wilkinson told Reuters. Bioethanol is a major export for the U.S. agricultural sector. According to Reuters, a record 1,54 million gallons (5,83 million liters) of bioethanol went to Canada last September.
Canada is not only investigating the possibility of counter-tariffs but also other measures. For example, it could be that restrictions are imposed on the amount of energy products that are exported to the US. Trump wants to apply a lower import tariff for oil and gas because America imports relatively much of this from Canada.
Wheat in demand among Canadian farmers
Other news from Canada is the area forecast from Stats Canada. For 2025, the statistics agency is counting on 27,5 million acres of wheat, compared to 26,6 million acres last year. The area of canola is 1,7% smaller at 21,6 million acres. Furthermore, according to the forecast, slightly less barley, oats and soybeans will be grown in Canada, but the area of corn will increase.
Meanwhile, the Black Sea region remains unsettled. Ukraine is prepared for a thirty-day ceasefire, but the Kremlin has not yet given the green light. In fact, four Syrian sailors were killed in a Russian attack on the port of Odessa while they were loading a ship with wheat.