Trade tensions with China send soybean market lower

World
Europe

Chicago Board of Trade (CBOT) agricultural commodities closed lower on Friday with trade tensions with China sending the soybean market significantly lower.

The most active corn contract for July delivery fell 5.5 cents, or 1.37 percent to settle at 3.965 dollars per bushel. July soybeans were down 18 cents, or 1.76 percent to settle at 10.0325 dollars per bushel.

Soybean futures suffered double digit losses after China, the biggest importer of US soybeans, predicted a decline in the oil seed import for the first time in 15 years.

According to the official website of the Chinese Ministry of Agriculture and Rural Affairs, soybean imports are expected to fall 0.3 percent in 2018 to 2019 to about 95.65 million metric tons, while the planting hectares of soybeans in China will be increased by 7.8 percent over 2017 to 2018.

Between October 2017 and September 2018, China’s soybean output is predicted to grow by 12.4 percent year-on-year to 14.55 million tons.

US traders view the projected decline of China's soybean imports as a result of trade tensions between the two countries.

Funds' mangers were liquidating CBOT length amid uncertain US-China and NAFTA negotiations, said analysts with AgResource, an agricultural research and advisory firm.

China's soybean imports totaled 95.53 million tons in 2017, the highest worldwide.

Source(s): Xinhua News Agency