CBOT soybeans slide on fund liquidation, China tariff cuts excluding soybeans

CHICAGO, Sept 28 (Reuters) — Chicago Board of Trade soybean futures slid sharply on Monday on long liquidation, with traders disappointed that soybeans were excluded from proposed tariff cuts on agricultural goods following last week's high-profile summit between President Donald Trump and President Xi Jinping. Under the deal announced Monday, China and the US have agreed to cut tariffs imposed on $60 billion worth of goods imported from each other, on an ‌array of products ranging from US corn to Chinese household appliances. The deal encompasses a broad range of other US agricultural goods including soyoil and soymeal, according to the tariff-reduction list jointly issued by China's commerce ministry and the White House. But China, the world's top importer of soybeans, omitted soybeans, the single biggest US agricultural export to China. Monday's announcement also implies that US soybeans will still face an additional tariff of 10%, which traders have warned is too high for private importers to absorb, even as Chinese state buyers have stepped up purchases. At the same time, managed commodity funds had built a massive net long position in CBOT soybean futures in recent weeks and record large net long positions in CBOT soymeal futures, leaving the market prone to bouts of long liquidation, market analysts said. CBOT November soybeans closed down 30-3/4 cents at $12.88-1/4 per bushel. Earlier in the session, the most-active contract at one point dipped to $12.70-1/4 a bushel, the lowest price since August 31. CBOT December soymeal fell $11.60 to end at $359.40 per ton after setting contract highs this week — the lowest since September 18. CBOT December soyoil ended 0.18 cent lower at 67.66 cents per pound. (Reporting by P.J. Huffstutter; Editing by Daniel Wallis) ((pj.huffstutter@thomsonreuters.com; 312-730-2200)