Soybeans fall off four-week high as dollar inches up

Soybean futures fell nearly one percent in American trade away from March 9 highs as the dollar index gained ground, following earlier data from the US, the world's largest soybean producer and exporter. 

As of 07:57 GMT, soybean futures due on May 15 fell 0.89% to $10.355 from the opening of $10.4475, while the dollar index rose 0.08% to 90.05 from the opening of 89.97. 

Earlier US data showed yhe ISM manufacturing PMI slowed down to 59.3 in March from 60.8 in February, missing expectations of 60.1. 

ISM manufacturing prices rose to 78.1 from 74.2, beating expectations of 72.5, while construction spending rose 0.1% in February, below expectations of a 0.4% rise.

China has started implementing its tariff hikes on about 128 US products worth $3 billion amid an escalation in trade protectionism from the US. 

The US Department of Agriculture reported a rise of 21% in US soybean inventories from the same period in 2017 to 2,107 million bushels from 1,739 million in early March 2017. 

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.