CBOT Soybean Futures Fell Due To US-China Trade War Worries
The Chicago Board of Trade (CBOT) soybean futures fell on October 23, as the market did not believe that the United States and China could make significant progress in resolving trade disputes at the G20 summit in Buenos Aires.
CBOT-1 soybeans closed down 2 cents at $8.81 per bushel.
During the trade war with the United States, China purchased Brazilian soybeans, and early harvesting in Mato Grosso, Brazil may allow China to continue to avoid buying US soybeans, traders said.
China is the world's largest importer of soybeans, and soybeans are the largest single agricultural exports of the United States to China. However, China’s retaliatory tariff on US soybeans has led to a stagnant bilateral soybean trade, which may cause US harvested soybeans to accumulate in warehouses and even rotten in the ground.
The US Department of Agriculture said that the exporter had reached a deal to sell 120,000 tons of US soybeans, and the destination was unknown.
The US Department of Agriculture said that as of the week of November 15, exports of US soybeans reached 685,500 tons, in line with the market forecast range of 55 to 850,000 tons. According to the US Department of Agriculture data, sales included 66,000 tons of soybeans that were cancelled for sale to China and 290,200 tons of soybeans sold to unknown destinations.
The CBOT-December soybean meal contract closed down 0.8 US dollars to 305.8 US dollars per short ton, and the December soyoil contract fell 0.15 US cents to 27.65 cents per pound.
On November 24th, the estimated volume of CBOT soybeans was 49,793, the number of soybean meal was 83,016, and the soybean oil was 99,831.
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