
ASAP Agri CEO Christina Serebryakova spoke
with Latifundist about how Donald Trump’s tariff wars could reshape corn,
soybean, and rapeseed markets and what this means for Ukrainian producers.
Q: The United States has imposed tariffs on Canada,
Mexico (which were postponed for implementation to April), and China, with
Europe potentially next. How could this affect global markets?
Christina Serebryakova: The
newly introduced U.S. tariffs and retaliatory measures have triggered
significant uncertainty across financial markets. Our Head of Insights &
Analytics, Olivier Bouillet, notes that the biggest concern for the U.S. is
inflation, which raises fears about economic stability. As a result, the S&P
500 and the U.S. dollar index have dipped below their pre-election November
2024 levels.
The impact on agricultural markets depends largely on how affected
countries respond. The renewed trade war, reminiscent of 2018, now extends
beyond China to Mexico and Canada, escalating tensions and reshaping trade
flows.
On 04 March 2025, CBOT corn futures fell to their lowest level since
early December 2024, while soybean prices hit their weakest since early January
2025, pressured by the tariff imposition.
Q: Some analysts believe Brazil will be the biggest
winner, replacing U.S. corn and soybeans in China. Do you agree?
Regarding corn, there are no clear winners yet. U.S. corn has already been struggling in China, with purchases muted in recent months as Brazil steps in to fill the gap. Some analysts predict China’s corn imports could drop to nearly 5 MMT in 2024/25 MY. About corn to Mexico – it is a separate topic, connected a lot with logistics competitiveness of Brazil.
As for soybeans, Brazil stands to benefit significantly. Last season,
the U.S. supplied 19 MMT—or 19% of China’s soybean imports. With Brazil’s
abundant soybean production and strong existing ties with China, it is
well-positioned to capitalize on this shift.
Q: Could Mexico, as the largest buyer of U.S. corn,
switch to Brazilian supplies?
If trade restrictions persist, Mexico—the world’s largest corn
importer—may reduce U.S. purchases. While Brazil could emerge as an alternative
supplier, logistical challenges remain. ASAP Agri’s parent company, Atria
Brokers, has opened a Brazilian office this year, and we have surveyed
Brazilian corn exporters, who reported little interest from Mexico at this
stage.
U.S. rail infrastructure provides a major cost advantage. According to
Ouro Safra, Mexico occasionally buys Brazilian corn, but rail efficiency makes
a large-scale switch unlikely. Julio Lombardi of Biond Agro highlights that all
Brazilian corn exports to Mexico rely on vessels, making them significantly
more expensive than U.S. shipments.
Q: What countermeasures do you expect from Canada and
Mexico?
The situation remains uncertain. On 7 March, Donald Trump postponed 25%
tariffs on many imports from Mexico and some imports from Canada for a month
amid widespread fears of the economic fallout from a broader trade war.
Herewith, in case it will be introduced since April, looks like Mexico
has a better chance of replacing U.S. corn than Canada does of finding new
buyers for its canola oil. Canada exports 90% of its canola crop as seeds and
processed products. The U.S. is its top market, typically accounting for 90% of
canola oil exports.
Q: Canada’s canola industry is considering redirecting
exports to Europe. Does this pose a competitive threat to Ukrainian rapeseed?
If trade barriers remain, Canada could face a canola surplus this season
and next, pressuring prices in Winnipeg and on the Euronext exchange.
Australia remains Ukraine’s main rapeseed competitor in the EU. However,
Canadian canola imports to Europe have surged eightfold this season. Our data
suggests that European sunflower processing plants have been running on
rapeseed for about two months, with more Canadian shipments expected soon.
Meanwhile, Australia regained access to China’s canola market in May
2022 after a two-year ban over quality concerns. With Australia refocused on
China, Canada may intensify its competition in Europe.
Q: The U.S. seems to be hurting itself by targeting
its biggest agricultural trade partners. What are its alternative markets?
I recently discussed this with Matt Ammermann, Risk Management Manager
at StoneX. He believes U.S. corn has already adjusted to China’s absence.
However, to Mexico the U.S. road is clean still until at least summer, when
Brazilian supply comes to market.
For soybeans, Matt confirmed our view that the U.S. will pivot towards
the Middle East. Meanwhile, Ukrainian corn faces its toughest competitive
environment this season. As of 5 March, the spread between Ukrainian corn on
CPT POC basis against CME peaked to 40 USD/MT—last seen at the start of the
season—due to an overheated Ukrainian CPT market in February and pressure on
U.S. prices from Trump’s tariff policies. For comparison, in early January, the
Ukrainian corn spread narrowed to nearly 20 USD/MT, prompting a wave of
contracts for January-February deliveries.
As for soy, as of 05 March, Ukrainian CPT POC spread with CME reached 20 USD/MT compared to a zero spread in January 2025.
Q: Trump recently urged farmers to prepare for
increased domestic sales. Does this signal a shift towards bioethanol?
Trump did not specify grains but referred to agricultural products in
general. The lack of details leaves room for interpretation.
One possibility is that U.S. farmers will be encouraged to produce more
for domestic markets as import costs rise due to tariffs. Alternatively, his
statement —“Get ready to start making a lot of agricultural product to be sold
INSIDE of the United States”—may imply that the government intends to redirect
surplus export supplies inward.
If so, the U.S. market could see an influx of domestic corn, potentially
driving bioethanol production higher. While Trump is not a champion of green
energy, he must balance support for both oil producers and Midwest farmers—two
key voter bases. Increasing bioethanol mandates in corn-growing states while
granting concessions to the oil industry could be a potential compromise.
Q: How do these developments impact Ukraine?
First, they exert downward pressure on global corn and soybean prices.
Mexico imports up to 23 MMT of U.S. corn annually. Even if Brazil
replaces part of that, at least 11 MMT of surplus U.S. corn could spill into
global markets. ASAP Agri’s trade flow matrix, presented at Global Grain 2024,
shows this volume is equivalent to Brazil’s total corn exports to North Africa
and the Middle East.
If U.S. and Brazilian corn end up substituting for each other, Ukrainian
exporters still may face challenges. Currently, U.S. corn offers highly
competitive pricing to North Africa, but
there was a rumor about some quality issues in recent vessels from U.S. Since 26 February 2025, when Trump’s administration declared plans to
implement 25% tariffs on imports from the European Union, EU buyers are
reluctant to purchase U.S. grain, being afraid of the potential restrictions.
Herewith, EU corn stocks remain high, further limiting demand.
About more insights on potential changes in the
Ukrainian grain market due to Trump’s tariffs, Christina Serebriakova, CEO of
ASAP Agri, will share in a detailed analysis during a panel discussion at the
EuroGrainExchange 2025 conference, taking place on April 10-11 in Bucharest.
Mark your calendars
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