Soybeans Ease to Over 2-Week Low
Soybeans fell below $13 a bushel, their lowest level in more than two weeks, but remained close to the 3-1/2-year high of $13.30 on September 10, as traders awaited signs that the US-China agreement to reduce tariffs on roughly $30 billion of imports from each country would translate into stronger Chinese demand for US soybeans. China’s tariff reductions cover products including corn, wheat, sorghum, meat, seafood and fresh produce, while the two countries also agreed to create an agricultural working group. Soybeans, however, were notably excluded apart from seeds, leaving US shipments subject to a roughly 13% tariff. China has already purchased more than half of its annual pledge to buy 25 million tons of US soybeans, but progress on a separate $17 billion agricultural purchase commitment remains limited. Ample supplies, weak domestic demand and disruptions to Black Sea grain flows could further constrain Chinese imports in the near term.
30 on September 10, as traders awaited signs that the US-China agreement to reduce tariffs on roughly $30 billion of imports from each country would translate into stronger Chinese demand for US soybeans. China’s tariff reductions cover products including corn, wheat, sorghum, meat, seafood and fresh produce, while the two countries also agreed to create an agricultural working group. Soybeans, however, were notably excluded apart from seeds, leaving US shipments subject to a roughly 13% tariff.
China has already purchased more than half of its annual pledge to buy 25 million tons of US soybeans, but progress on a separate $17 billion agricultural purchase commitment remains limited. Ample supplies, weak domestic demand and disruptions to Black Sea grain flows could further constrain Chinese imports in the near term.