CHICAGO: Chicago Board of Trade soybean futures closed the day down less than 1 percent on Wednesday, pressured by weakness in wheat futures and expectations that US-China trade tensions will continue to escalate this week, traders said.
CBOT November soybeans settled down 6-1/4 cents at $8.38 per bushel on Wednesday.
CBOT December soymeal futures closed down $1.50 at $309.70 per short ton while December soyoil fell 0.22 cent at 28.56 cents per pound.
US stocks also were trading lower on fears Trump would soon ramp up the trade war with China, and the dollar fell against a basket of currencies.
“We’re all waiting to see if, at the end of the week, the US is going to put another $2.5 billion in tariffs on China,” said Jim Gerlach, president of A/C Trading. “That’s not good, especially when the soybean yields we’re expecting are supposed to be so good.”
The US trade deficit rose to a five-month high in July, with the politically sensitive gap with China hitting a record high, according to Commerce Department data released Wednesday, which economists said could embolden the Trump administration to aggressively pursue its “America First” agenda.
Uncertainty over the status of the North American Free Trade Agreement, and whether Canada will be part of that deal, also pressured the grains complex, traders said.
President Donald Trump on Wednesday said the United States should have a fair trade deal with Canada, as the two countries resumed negotiations over renegotiating NAFTA.
Source: Brecorder
