Chicago soybean futures slumped more than 2% on Monday — dropping below $12 a bushel — in the face of a potential delay of US trade talks with China, the world’s top buyer of the oilseed.
US President Donald Trump said he could delay a highly-anticipated summit with counterpart Xi Jinping if Beijing doesn’t help unblock the Strait of Hormuz, according to an interview with the Financial Times. Soybean prices are particularly vulnerable to tensions between the two sides as China is a major buyer of American produce.
A trade summit between the two leaders late last year spurred a flurry of Chinese purchases of US soybeans, following a months-long lull. After reaching an initial 12-million ton target, China’s purchases from the US have eased again, and any pushback in the dates of the upcoming talks could hold up a revival in sales.
Most-active soybean futures fell as much as 2.6%, the biggest intraday drop since early November, with soybean meal and oil also each declining about 2%.
Trump was due to travel to China for the talks in late March and his statement comes as trade negotiators between the two sides are meeting in Paris. Reuters reported Monday that Chinese negotiators showed an openness to additional purchases of US products including poultry, beef and non-soybean row crops.
The Strait of Hormuz, a major global trade channel for energy supplies, has been effectively closed since US-Israeli attacks began on Iran — choking flows of oil, fuel and fertilizer from the region and sending prices soaring. The Trump administration is engaging with allies to secure the strait.
This article was generated from an automated news agency feed without modifications to text.
