Soybeans, Wheat Markets See Late-Day Buying Amid Trade Tensions

Soybean and wheat markets saw late-day buying on Wednesday, driven by funds and technical traders. The soybean market was up modestly, with traders watching harvest activity and early rain delays in some areas. The tight stocks-to-usage ratio will be closely monitored, especially given the ongoing trade tensions between the US and China.

The two countries are set to discuss trade next week in Washington D.C., and there's speculation that tariffs could be on the table. This has kept private firms from buying US soybeans due to China's 10% import tariff. The USDA will release its weekly sales numbers on Thursday morning, providing more insight into market dynamics.

In Canada, Statistics Canada projects a 2026 canola crop at 22.051 million tons, down 0.8% from 2025 due to yield decline. The soybean crop is expected to increase by 7.8% to 7.456 million tons, driven by higher yields and harvested area.

Corn was lower on profit taking and technical selling, with traders keeping a close eye on harvest progress and yield results. With little room for further declines in yield due to new crop stocks-to-usage expectations, the market is closely watching ethanol production numbers.