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Trade War Fears Cause Soybean Prices to Hit 9-Year Lows
USAgNet - 06/20/2018

Soybean futures plunged Tuesday to their lowest in more than nine years following renewed concerns about a U.S.-China trade war.

A war of words between the two countries picked up overnight, following announcements of tit-for-tat tariffs on $34 billion worth of imports late last week. In retaliation against planned U.S. duties, Beijing intends to impose a 25 percent tariff on 545 U.S. goods, including soybeans, reports CNBC.

Soybean futures for July delivery dropped more than 7 percent to a low of $8.415 a bushel, their lowest since March 2009, according to Thomson Reuters. They were trading near $8.64 a bushel as of 11 a.m. ET.

There are a lot of "unknowns and no confidence," said Rich Nelson, director of research at Allendale, an agricultural market research and trading firm. He added that prices could reverse just as quickly if headlines on trade changed.

With Tuesday's late morning sell-off, soybean prices are now more than 17 percent lower for the quarter and down more than 10 percent for the year.

Corn futures tumbled to their lowest price in more than six months. Wheat and oat futures fell roughly 1.4 percent and 3 percent, respectively, while rough rice futures were mildly lower.

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