Soybeans settle higher as dollar falls off five-week high

Soybean futures titled higher in American trade for the third straight session away from February 9 lows as the dollar index fell off early March highs, following earlier data from the US, the world's second largest soybean exporter. 

As of 07:53 GMT, soybean futures due on May 15 rose 0.24% to $10.3375 from the opening of $10.3125, while the dollar index fell 0.39% to 90.11 from the opening of 90.46, away from five-week highs. 

Earlier US data showed the unemployment rate settled at 2001 lows at 4.1% in March, missing expectations of 4.1%, while average earnings rose 0.3% as expected, up from 0.1% in February. 

The economy created 103 thousand new jobs in December, down from 326K in February, revised from 314K, and missing expectations of 188K. 

White House economic adviser Larry Kudlow accused China of being the cause of the problem, while saying the solution is in US hands, asserting that Trump is the first President to confront China on its actions.

Kudlow said there could be months-long talks between the two countries before launching the new tariffs, asserting the US administration doesn't seek a trade war. 

US-China trade tensions grew yet more after President Donald Trump directed his trade officials to look into imposing tariffs on $100 billion of additional Chinese imports.

Last Tuesday, US President Donald Trump unveiled a new list of Chinese imports that would be put under higher 25% tariffs, with China instantly retaliating with imposing 25% taxes on 106 US products worth $50 billion. 

The escalating dispute weighed recently on soybean prices, with reports indicating that China has expanded its soybean imports from Brazil while limiting US imports to lessen exposure to volatile US relations. 

The US Department of Agriculture reported 542.4 thousand tonnes of soybeans have been inspected in the week ending March 29, down 24% from the previous week, and down 14% from the same period of last year, with total inspected product now amounting to 41.5 million tonnes in the marketing year starting June, also down from 47 million tonnes in the previous marketing year. 

The USDA reported that 89 million acres of soybean lands will be cultivated this year, down from 90.1 million last year, and below market expectations of 91 million acres. 

Soybean lobbyists have called on President Donald Trump to reverse and amend his tariffs on China due to its potential consequences on soybean exports to the largest importer of the commodity in the world. 

US Secretary of Agriculture  Sonny Perdue said in recent remarks that President Donald Trump's tariffs on China and other countries will cause some trade hindrance, expecting agricultural products to be on top of the vengeance list for angry trade partners.