Chicago Board of Trade soyabean futures on Wednesday were pressured by market worries about trade retaliation if the US rolls out import tariffs on steel and aluminium, traders said. CBOT May soyabeans fell 9-1/2 cents to $10.65-1/4 per bushel, down 1.05 percent on Wednesday.
Soyabean futures also have had a hard time recovering from previous losses, in part because weather forecasts for Argentina are wetter than previously thought - raising the potential of higher oilseed yields, one trader said. Traders are questioning how much of the soyabean crop has been lost to date in Argentina, due to drought conditions.
Traders said they spent much of the day squaring up positions ahead of the monthly supply and demand report from the US Department of Agriculture, set for release on Thursday. CBOT May soyameal futures closed down $4.50, a 1.39 percent drop, to $383.5 per short ton. CBOT May soyaoil fell 0.38 cent per pound, or 1.26 percent, to 32.10 cents per pound.
Traders were on edge amid news that US President Donald Trump's announcement on steel and aluminium tariffs will come by the end of this week. Agricultural trade groups fear that such tariffs raise the risk of retaliation against grain, dairy and other farm exports from major trade partners such as China, Europe and Canada.
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