Soybean Futures Close Lower Monday Amid Trade Concerns
Soybeans finished lower on Monday amid concerns about exports after China announced it will impose tariffs on more than 100 items imported from the U.S. including pork, fruit, and wine.
Beans, as expected, weren’t on the list but traders and investors are concerned that the Asian nation, the biggest importer of the oilseeds, will add them to the list.
The charges are considered retaliation after the U.S. imposed tariffs on steel and aluminum last month and said it would add levies of $50 billion to $60 billion worth of Chinese goods.
China last week bought no soybeans from the U.S., an unusual move from the country, which consistently is the biggest weekly buyer of U.S. oilseeds. Pork and scrap aluminum from the U.S. will be subject to import tariffs of 25% starting today, said China, which suspended its obligations to the World Trade Organization of several items.
Prices in the overnight session were higher as investors focused on last week’s prospective plantings report that showed growers would plant fewer soybean and corn acres than previously expected.
Soybean futures for May delivery fell 7¾¢ to $10.37 a bushel on the Chicago Board of Trade. Soy meal lost $6.80 to $377.20 a short ton and soy oil gained 0.17¢ to 32.04¢ per ounce.
Corn futures ended lower as well, dropping ¼¢ to $3.87½ a bushel.
Wheat fell 4¼¢ to $4.46 3/4 a bushel in Chicago while Kansas City futures rose 1¾¢ to $4.69 a bushel.