Key facts
- CBOT corn, soybean, and wheat futures fell on speculation that US tariffs could lead China to withdraw from a trade deal.
- The potential trade deal involves 25 MMT of US soybeans and $17 billion in goods.
- AgResource Company expressed doubt that the tariffs would damage the trade deal.
- Soybean exports increased by 115,000 MT from the previous week.
- Cumulative soybean exports are up 5.6% year-to-date.
- July Soybean futures settled at their lowest closing level since early February.
CBOT corn, soybean, and wheat futures experienced a significant price decline due to speculation that proposed US tariffs under Section 301 could prompt China to withdraw from a trade agreement involving 25 million metric tons of US soybeans and $17 billion in goods. AgResource Company expressed doubt that the tariffs would damage the trade deal. In separate data, soybean exports increased by 115,000 MT from the previous week, bringing cumulative exports up 5.6% year-to-date. USDA projects global soybean exports to rise 1.3% year-over-year. July Soybean futures settled sharply lower, marking their lowest closing level since early February, as large speculators liquidated long positions. This technical breakdown occurred despite weekly export sales data landing within consensus expectations. CBOT soybean futures fell 25 cents on Thursday, with July falling below the 200-day moving average for the first time since late January. The soy product spread finished 42 cents lower, led by a steep correction in soyoil.