Soybean futures on the CBOT fell sharply on a wave of long liquidation after China excluded soybeans from its list of agricultural goods receiving import tariff reductions. The November soybean contract dropped 30.75 cents, or 2.33%, to settle at $12.8825 a bushel, while the December corn contract fell 5.25 cents, or 0.99%, to settle at $5.2300 a bushel, and the December wheat contract lost 14.50 cents, or 2.06%, to settle at $6.8875 a bushel. Under the agreement announced on Monday, China and the United States agreed to cut customs tariffs on each other's imports worth a combined $60 billion, covering everything from U.S. corn to Chinese home appliances, and including other agricultural goods such as wheat, sorghum, vegetable oils, meat and dairy products. But China, the world's largest soybean importer, did not include soybeans, the top U.S. agricultural export to China, on that list, leaving U.S. soybeans still facing an additional 10% import tariff that traders warn is too high for private importers to absorb.
China left soybeans off its tariff-reduction list, keeping the extra 10% import tariff that traders say private importers cannot absorb.
Wheat fell after China's tariff-cut list excluded soybeans, with wheat included in the deal but the soybean snub dragging the whole grain complex lower.
