Chicago | Reuters — Chicago soybeans fell on Monday after an overnight rally with the mood in outside markets souring as U.S. President Donald Trump attacked U.S. Federal Reserve Chair Jerome Powell, causing concerns about the autonomy of the U.S. central bank.
Wheat also slipped on the news of Trump’s criticism, and corn traded near flat, as it received support from strong demand, according to analysts.
The July soybean contract on the Chicago Board of Trade was down 6-1/4 cents at $10.41-1/2 a bushel, having earlier reached its highest point since late February.
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July corn lost a 1/4 cent at $4.90 a bushel and July wheat was down 10 cents at $5.52-1/4 a bushel.
Chicago grains and soybeans were getting caught up in a widespread sell-off, said Mark Soderberg, senior agricultural market analyst at ADM Investor Services, after Trump called Powell a “major loser” in a social media post on Monday and said the U.S. economy could slow down if interest rates are not lowered immediately.
Powell says rates should not be lowered until there is more data on the inflationary impact of Trump’s tariff policies.
“I think the market’s growing increasingly uncomfortable with the tone the Trump administration is taking with the Federal Reserve,” Soderberg said.
The comments sent stock markets lower as traders feared a fight over the Fed’s monetary policy independence and the possibility that Trump might try to remove Powell before his term is over.
Meanwhile, wet weather forecast in parts of the U.S. Midwest is likely to slow planting of corn, Soderberg said, although there should be good progress on spring wheat in the Northern Plains, he said.
Corn also got support from strong demand, Soderberg said.
“We’re competitively priced in the global marketplace,” he said, adding, “You’re going to see higher exports and lower stocks down the road.”
