Soybeans slide 2% to two-month low

Soybean futures fell over two percent in American trade to February 9 lows even as the dollar index gave up ground, following earlier data from the US, the world's second largest soybean exporter, and amid fears of escalation in US-China trade dispute. 

As of 07:45 GMT, soybean futures due on May 15 fell 2.19% to $10.1525 from the opening of $10.3800, while the dollar index shed 0.08% to 90.13 from the opening of 90.20. 

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 heavily 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.