CBOT soybean futures plunge as China tariff cuts exclude soybeans
SOYB•CBOT soybean futures fell as much as 2.46% after China’s announced tariff cuts on $60 billion of goods excluded soybeans, leaving them subject to an additional 10% tariff. Corn and wheat were also lower.
1. Soybeans excluded
CBOT soybean futures plunged on Monday as traders reacted to China’s decision to exclude soybeans from announced tariff cuts on goods traded with the United States. The cuts cover products including corn, wheat, sorghum, soyoil and soymeal, but not soybeans, the largest U.S. agricultural export to China.
2. Liquidation pressure
The announcement implies U.S. soybeans will continue to face an additional 10% tariff, which traders have warned may be too high for private importers to absorb. Analysts said funds’ large bullish positions in soybean and soymeal futures left the markets vulnerable to long liquidation. The most-active continuous soybean contract fell to $12.79¼ a bushel, its lowest since August 31, and was down 2.46% at $12.86½.
3. Other grain markets
Corn futures were down 1.51% at $5.20¼ a bushel, while wheat fell 2.28% to $6.87¼. Wheat traders continued to watch diplomatic efforts to ease disruptions to Black Sea grain exports.
