Chicago Agriculture Commodities Finished Lower
Chicago Board of Trade (CBOT) agriculture commodities finished lower Tuesday with Soybean falling to 2-year lows on escalating trade tensions between the US and China.
The most active Soybean contract for July delivery fell 19.5c, or 2.15%, to settle at 8.89 bu.
July Corn went down 2.25c, or 0.63%, to close at 3.5375 bu.
July Wheat was down 12.25c, or 2.50%, to settle at 4.7775 bu.
After unveiling plans to impose additional tariffs on Chinese goods worth around $50-B the White House went further by identifying a further $200-B worth of Chinese products for additional tariffs.
CBOT brokers reported that funds sold 12,000 contracts of Soybeans, 7,000 contracts of Wheat and 17,000 contracts of Corn Tuesday.
During the morning session, CBOT Soybeans once lost more than 5%, but saw some recovery later. Still, the price at close reached the lowest level since March 2016.
China is a major buyer of US Soybean.
A spokesperson of China’s Ministry of Commerce said Tuesday that if the United States loses its rationality and unveils another list of Chinese products for additional tariffs, China will have no choice but to take comprehensive measures combining quantitative and qualitative ones to resolutely strike back.
HeffX-LTN’s ag analyst estimates that in the past 2 weeks, US farmers have lost more than $100 per acre in revenue as a result of the fall in crop prices
Notably, the bench mark Chinese stock market dove Tuesday with over 25% of the issues on the indexes closing Lock Limit down, that is trillions of RMB Yuan.
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