CBOT soybeans slide on fund liquidation, China tariff cuts excluding soybeans
SOYB•SOYB•SOYB•SOYB•CBOT November soybean futures fell 30-3/4 cents to $12.88-1/4 per bushel after China’s announced tariff cuts excluded soybeans. The contract earlier touched $12.70-1/4, its lowest since August 31.
Soybean futures slid on Monday as traders reacted to China and the United States agreeing to cut tariffs on $60 billion worth of goods imported from each country. The announced cuts cover US corn, soyoil and soymeal, but exclude soybeans, the largest US agricultural export to China.
The announcement implies US soybeans will continue to face an additional 10% tariff, which traders have warned private importers may be unable to absorb. Managed commodity funds had built large net long positions in soybean and soymeal futures, leaving the market prone to long liquidation, analysts said.
CBOT December soymeal fell $11.60 to $359.40 per ton, its lowest since September 18, after setting contract highs this week. December soyoil ended 0.18 cent lower at 67.66 cents per pound.
