Soybeans and grains trading were mixed on Thursday as investors waited to see whether the U.S. or China threatens more tariffs on the other’s goods.
The tit-for-tat “trade war” between the two biggest economies in the world has led to a decline in commodity and stock prices, though wheat took back some of its losses Wednesday while corn and soybeans each rose by less than a penny.
The U.S. announced tariffs on $50 billion worth of Chinese goods last week and has threatened to impose duties on another $200 billion worth of wares from the Asian nation.
China responded by saying it would impose levies on an equal amount of U.S. goods, which will likely include soybeans, and that it’s not afraid of a fight.
That caused bean futures to plunge to the lowest in almost a decade. The sell-off, however, sparked bargain buying as some end-users filled needs and speculative investors who had bet on lower prices bought back their contracts and closed their positions.
Traders seem to be in limbo as they await further announcements.
Soybean futures for July delivery fell three and one-quarter cents to $8.86 on the Chicago Board of Trade. Soy meal rose 30 cents to $333.50 a short tonne while soy oil lost 0.19 cents to 29.18 cents a pound.
Corn futures rose one-quarter cent to $3.54 a bushel overnight.
Wheat for July delivery lost 1 and a quarter cent to $4.9 a bushel overnight, while Kansas City futures declined 4 cent to $5.01 a bushel.
Frontpage November 21, 2019