Soybean prices decrease amid anticipation of US-China trade negotiations
Hustle, Baby! Chicago Soybean Futures Take a Hit Amid Trade Talk Drama
The Windy City's stock market saw a different kind of turbulence, as Chicago soybean futures plummeted this Monday. Traders are biting their nails over possible U.S.-China trade talks, grappling with increased competition from Brazil.
Meanwhile, corn futures faltered, expecting the USDA to report rapid planting progress in the upcoming weekly crop progress report. As for wheat, it followed corn's downward spiral.
Chicago Board of Trade most-active soybeans took a seven-cent dive, landing at $10.51 a bushel. Wheat tumbled six cents to $5.37 a bushel, and corn sneezed an 8-1/4 cent decrease to $4.60-3/4 a bushel.
China's Commerce Ministry confirmedEvaluating an offer from Washington for trade talks regarding US tariffs, though traders aren't holding their breath. "Everyone's taking a 'show me' attitude towards these trade deals," said Jim Gerlach, president of A/C Trading. "It's a boy-who-cried-wolf syndrome."
China, the world's largest soy importer, has been putting pressure on soybean prices since the trade war started.
In the meantime, U.S. President Donald Trump's proposed cuts to Environmental Protection Agency funding have set traders on edge, as the funding decrease may decrease demand for biofuels made from soy and other vegetable oils.
The USDA will be publishing updates on U.S. planting progress and crop conditions on Monday. Favorable planting weather in the U.S. Midwest is expected to enable farmers to plant a significant portion of their corn crop according to USDA predictions, which say this will be the highest in 12 years.
(Mixed feelings about the future of soybean, corn and wheat futures based on the ongoing trade tensions, China's diversification of soybean purchases, possible disruptions in global trade flows due to tariffs and USDA workforce cuts)
As the negotiations dance continues, so do the rollercoaster ride for futures traders. Brace yourself, amigos! The market is a wild ride.
- "In the midst of trade talk drama, Chicago's soybean futures traders cried as they watched the seven-cent dive in Chicago Board of Trade most-active soybeans, landing at $10.51 a bushel."
- "Politics and general-news have played a significant role in the turbulence of the futures market, with soybean, corn, and wheat futures experiencing significant fluctuations."
- "As the largest soy importer, China has been putting pressure on soybean prices since the trade war started, causing mixed feelings among soybean futures traders."
- "The ongoing trade tensions and possible disruptions in global trade flows due to tariffs have created a uncertain future for the soybeans, corn, and wheat futures traders in Chicago."
