Wheat, soybean and corn quotes in the US rose by 2.3-3.5% after signing an agreement with Vietnam

US agricultural markets remain under pressure from expectations of a good harvest in the new season and uncertainty over exports to China, which has vowed to limit purchases of US soybeans and corn after Trump imposed steep tariffs. Traders reacted positively to the additional export prospects linked to the Vietnam deal and intensified speculative buying ahead of the long US Independence Day weekend on Friday.

Yesterday, Trump announced a "trade deal" with Vietnam, which led to a sharp speculative increase in soybean, corn, and wheat prices in the US.

July wheat futures rose yesterday:

• by 3.5% to $204.3/t for SRW wheat in Chicago,
• by 2.3% to $192/t for HRW wheat in Kansas City,
• by 3.5% to $232/t for HRS wheat in Minneapolis.

Also on the Chicago Board of Trade, September corn futures rose 3% yesterday to $164.6/t, and July soybean futures rose 2.5% to $385.8/t.

President Trump announced an agreement with Vietnam on a new trade deal that will reduce the Asian country's tariff rate on exports to the United States.

According to the BBC, the tariff for Vietnam will be 20%, which is significantly lower than the 46% announced by Trump during his "American Liberation Day" presentation on April 2. If Vietnam is an intermediate link on the export route, the rate will rise to 40%, since about a third of the products that the country supplies to the United States are actually supplied from China. Instead, American goods will enter Vietnam on a free market basis - that is, without any tariffs at all.

Vietnam has pledged to buy 50 Boeing aircraft and $2.9 billion in US agricultural products. Recall that the US exports $170-190 billion in agricultural and related products every year.

It is worth noting that in the 2024/25 MY, Vietnam purchased only 3% of wheat and corn exported from the US and 2% of soybeans, although the volume of soybean meal purchased amounted to almost 5.7% of exports.