Soybean Prices Plummet Amid Tariff Retaliation and Market Shifts
Soybean futures experienced a significant decline on Friday, with most contracts falling between 32 to 35 cents. The May contract saw a drop of 46 cents over the week, while November futures were down 44 ¾ cents. According to CmdtyView, the national front month Cash Bean price decreased by 34 1/4 cents, settling at $9.21. Additionally, soymeal futures fell by $1.90 to $5.70 per ton, and soy oil futures declined by 122 to 139 points.
This downturn follows China’s decision to impose a 34% retaliatory tariff on all U.S. goods as a response to President Trump’s tariffs. Currently, there are nearly 600,000 metric tons (MT) of unshipped soybean sales to China, along with an additional 2.02 million MT in sales to unidentified destinations, some of which may include China.
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The Commitment of Traders report released on Friday afternoon indicated that speculative traders have reduced their net short position in soybean futures and options, cutting back by 13,112 contracts as of Tuesday. They held a net short of 29,847 contracts on April 1.
Meanwhile, the USDA Export Sales report revealed commitments of 46.17 million MT as of March 27, which is 14% higher than the same period last year. This figure represents 93% of the USDA’s forecast, slightly below the 94% average pace.
May 25 Soybeans closed at $9.77, down 34 1/2 cents,
Nearby Cash stood at $9.21, down 34 1/4 cents,
Jul 25 Soybeans closed at $9.93, down 33 1/4 cents,
Nov 25 Soybeans closed at $9.84 1/4, down 32 3/4 cents,
New Crop Cash was $9.22, down 32 1/2 cents,
On the date of publication, Austin Schroeder did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information and data in this article are for informational purposes only. For more details, please view the Barchart Disclosure Policy here.
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