Corn falls on Trump Mexico tariff, but set for 6% weekly gain
U.S. corn futures fell on Friday after U.S. President Donald Trump said he would impose tariffs on all goods imported from Mexico, but the grain was still set for a weekly rise of more than 6% percent due to big delays in
* The most active corn futures on the Chicago Board of Trade fell 1.2% on Friday, but were up more than 6% for the
week, taking gains over the past three weeks to more than 22%.
* Corn on Wednesday hit a high of $4.38 a bushel – the highest since June 2016.
* The most active wheat futures fell 1.75% but were up 3% for the week, the third straight weekly gain.
* The most active soybean futures were up more than 6% for the week, the biggest weekly rally since October 2014.
* President Donald Trump, struggling to stem a surge of illegal immigrants across the southern border, vowed on Thursday to impose a tariff on all goods coming from Mexico starting at 5% and ratcheting higher until the flow of border-crossers ceases.
* Mexico is a large buyer of U.S. corn, raising fears the grain could be caught up in any counter measures to the tariffs.
* Corn has rallied strongly in recent weeks as heavy rains have led to a slow rate of planting in the United States.
* Hot and dry weather will persist across Australia’s east coast for at least another three months, the country’s weather bureau said on Thursday, in a forecast that threatens to severely crimp agricultural production.
* The Mexican peso sank to three-month lows against the dollar early on Friday after Washington unexpectedly said it will slap tariffs on all goods coming from its southern neighbour.
* Oil prices dropped 1.5% percent on Friday to their lowest in nearly three months after U.S. President Donald Trump said he would impose tariffs on imports from Mexico, stoking fears about global economic growth.
* U.S. stocks showed signs of stabilizing on Thursday, but gains were kept in check by conflicting comments on trade talks from President Donald Trump and Beijing that reinforced concerns about a potentially lengthy battle harming global growth.
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Grains prices at 0124 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 505.50 -9.00 -1.75% +3.06% 456.08 68
CBOT corn 431.25 -5.00 -1.15% +2.99% 377.84 81
CBOT soy 885.75 -3.25 -0.37% +1.58% 846.56 75
CBOT rice 11.66 $0.00 +0.00% -0.47% $10.98 85
WTI crude 56.16 -$0.43 -0.76% -4.51% $61.98 20
Euro/dlr $1.114 $0.001 +0.04% +0.05%
USD/AUD 0.6912 0.000 +0.01% -0.07%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
Source: Reuters (Reporting by Colin Packham; editing by Richard Pullin)