BEIJING- Chicago soybean futures rose on Monday, but hovered near its lowest level this year hit in the previous session, after China announced an additional 34 percent tariff on all US goods, with soybeans expected to take the biggest hit.
The most-active soybean contract on the Chicago Board of Trade (CBOT) gained 0.84 percent to $9.85 a bushel. The contract hit $9.7 on Friday, its lowest level since December 20.
Corn slid 0.22 percent to $4.59 a bushel while wheat added 0.43 percent to $5.31 a bushel, after three straight sessions of losses.
Corn exports remained unaffected, as China hasn’t been a key buyer in recent months, and Mexico – the top US corn buyer – was exempted from the reciprocal tariffs.
In China, the most-active soymeal contract rose more than 2 percent – its biggest daily jump in more than two months.
Beijing’s move, in response to US reciprocal tariffs, adds to the 10-15 percent duties already levied on roughly $21 billion worth of agricultural trade in early March.
Analysts warn the new measures could cripple US agricultural exports to China, particularly soybeans, boosting Brazil’s market share.
“The new tariffs will likely pressure US soybean exports while having limited immediate impact on China’s domestic supply,” said Liu Jinlu, an agricultural researcher at Guoyuan Futures.
