Soybean futures were pounded lower on Friday after China said it would hit back against the tariffs announced by US President Donald Trump earlier this week. Wheat also ended lower while corn managed a mix close.
Beijing said today it will slap a 34% tariff on all imported goods originating from the US effective April 10. The new Chinese levy matches the 34% tariff rate that Trump announced on imports of Chinese goods on Wednesday. It will be in addition to the import duties China already placed on some American agricultural goods last month, including 10% on soybeans. A trader told Reuters today that China’s tariff is prohibitive enough to blunt all imports of American ag products, with soybeans likely to be the worst hit. May beans lost 34 ½ cents to $9.77, and November tumbled 32 ¾ cents to $9.84 ¼.
Tariff-related pressure overhung the wheat, along with a stronger American dollar which makes US-origin wheat more expensive for foreign buyers. May Chicago wheat dropped 7 cents to $5.29, May Kansas City lost 11 ½ cents to $5.57 ½, and May Minneapolis was 6 ¾ cents lower at $5.87 ¼.
Some support for corn came from the fact China has not been a significant buyer of American corn this year. The market was also underpinned by Mexico – the No. 1 buyer of American corn – escaping Wednesday’s US tariff announcement relatively unscathed along with Canada. May corn was up 2 ¾ cents to $4.60 ¾, and December slipped 3/4 of a cent to $4.46 3/4.
