China Keeps Tariff on Soybeans, Soybean Prices Plummet

Soybean prices plummeted on Thursday due to China's decision to maintain its 10% tariff on soybean imports. This move is seen as a deterrent for private Chinese firms to buy US soybeans directly, instead relying on government-owned entities for purchases.

Export inspections of US soybeans were up both week-over-week and year-over-year, primarily headed to China and Egypt. However, the USDA reported that 17% of the soybean crop has been harvested, matching its five-year average, with 75% of the crop dropping leaves and 58% in good to excellent condition.

The Brazilian soybean harvest is also underway, with early planting already taking place. Meanwhile, corn prices declined on fund and technical selling, with 18% of the crop having been harvested as of Sunday, in line with recent years. The USDA notes that 57% of the corn crop is in good to excellent condition.