Soybeans slip after missing out on US-China tariff cuts
SOYB•Chicago soybean futures fell 1.8% to $12.95-1/2 a bushel after China’s list of U.S. agricultural goods for tariff cuts omitted soybeans. The announcement implies U.S. soybeans will continue to face an additional 10% tariff.
1. Soybeans excluded
Chicago soybean futures fell on Monday after traders were disappointed that soybeans were left off China’s list of U.S. agricultural goods set for tariff cuts following last week’s U.S.-China summit. The most-traded contract was down 1.8% at $12.95-1/2 a bushel at 1200 GMT, after touching a two-week low.
2. Other grains decline
The list included wheat, corn and sorghum, but not soybeans, the largest U.S. agricultural export to China. Chicago wheat fell 1.1% to $6.95-3/4 a bushel and corn dropped 1.3% to $5.21-1/2, while both remained above one-month lows hit Friday.
3. Trade and supply context
The announcement implies U.S. soybeans will continue to face an additional 10% tariff, which traders have warned is too high for private importers to absorb, even as Chinese state buyers have stepped up purchases. Importer buying and alternative supplies, including increased Argentine export sales, have encouraged grain markets to ease after reaching three-year highs at the start of September.
