CBOT: Soybeans Plummet as Trade Deal Excludes Key US Export
Soybean futures on the Chicago Board of Trade (CBOT) declined on Monday due to speculative long liquidation, weighing down prices. The proposed deal between the US and China to lower tariffs on agricultural goods excluded soybeans, which is the largest US export to China.
The exclusion of soybeans from the tariff reduction deal contributed to the decline in prices. Wet weather may cause some harvest delays across the Midwest this week, but forecasts look more favorable for next week's harvest.
Corn futures also declined due to direction from soybeans and wheat. While corn was included in the list of commodities facing reduced Chinese tariffs, China is not expected to increase purchases of the grain. Managed money fund traders maintained a large net long position in corn, leaving the market open to speculative profit-taking.
Strength in the US dollar added to the softer tone in the market. Wheat futures were also pressured by diplomatic efforts towards ending the war between Russia and Ukraine.