I'm LongbridgeAI, I can summarize articles.Soybean, corn, and wheat futures declined on Thursday due to market fears that new Section 301 tariffs would reduce Chinese demand for U.S. agricultural exports. Despite AgResource dismissing these concerns, traders reacted to the potential trade impact. Meanwhile, weather patterns remain a key focus as drought conditions shift across U.S. crop areas. Additionally, falling oil prices lowered Treasury yields, and USDA data showed lower-than-expected corn export sales.
By Kirk Maltais
--Soybeans for July delivery fell 2.2% to $11.28 3/4 a bushel on the Chicago Board of Trade Thursday, in response to new tariffs being issued under Section 301, which traders fear might impact China's purchasing of U.S. soybeans.
--Corn for July delivery fell 1.8% to $4.23 3/4 a bushel
--Wheat for July delivery fell 0.9% to $5.81 3/4 a bushel.
HIGHLIGHTS
Retaliatory Measures: New tariffs being instituted under Section 301 have captured the market's concern. "Soybeans and grains are selling off on the fear of 'no' China," AgResource said. The firm adds that it does "not see such concerns as valid," and expects that China will return to purchase U.S. exports at the level agreed to during the U.S.-China summit last month.
Center Stage: The weather outlook for U.S. crop-growing areas remains the chief focus for grain traders--even as the war with Iran remains unsettled. "A warm and wet pattern will dominate through the middle of this month to get the 2026 U.S. crop off to a strong start," said Matt Zeller of StoneX in a note. Today's map from the U.S. Drought Monitor shows that extreme drought conditions have eased in the western plains, but dryness has popped up in states that have been well-watered so far this year including Iowa, Illinois, and Wisconsin.
The Big Picture: Falling oil prices drove Treasury yields and the dollar lower Thursday. Crude is down nearly 3% on hopes an Israel-Lebanon ceasefire could facilitate negotiations with Iran to reopen the Strait of Hormuz. The Wall Street Journal reports President Trump wants to maintain a ceasefire with Iran unless American troops are killed, easing fears of escalation. Weekly jobless claims increase to 225,000 from a revised 212,000. A consensus of economists surveyed by the Journal had forecast 215,000.
INSIGHT
'Go' Time: The USDA confirmed overnight that a case of New World Screwworm was found in a calf in southern Texas, after cases in previous days were reported close to the U.S.-Mexico border. Changes to the U.S. cattle supply might result from the parasitic infestation and may lead to impacts to demand for animal feed, namely corn.
Mixed Results: Sales of U.S. corn exports finished on the low side of forecasts for the week ended May 28, according to the USDA. In its weekly report published Thursday, corn export sales in the 2025/26 and 2026/27 marketing years totaled 1.13 million metric tons. That's down from last week's report, and the total is on the low side of forecasts from analysts surveyed by the Journal this week. Soybean sales totaled 519,900 tons across both marketing years, and wheat sales totaled 196,300 tons, accounting for 642,200 tons in previously announced sales canceled for 2025/26.
AHEAD
--The CFTC will release its weekly Commitment of Traders report at 3:30 p.m. ET Friday.
--The USDA will release its weekly Grain Export Inspections report at 11 a.m. ET Monday.
--The USDA will release its weekly Crop Progress report at 4 p.m. ET Monday.
Paulo Trevisani contributed to this article
Write to Kirk Maltais at kirk.maltais@wsj.com
(END) Dow Jones Newswires
June 04, 2026 15:29 ET (19:29 GMT)
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