FX.co ★ Soybeans Fall on Fears of Tariff Retaliation

Soybean futures have declined to approximately $10.1 per bushel, marking their lowest point since March 26. This downturn is driven by apprehensions surrounding the new U.S. tariffs, which could trigger retaliatory actions against American agricultural exports. Notably, over 40% of U.S. soybean production is destined for foreign markets. President Donald Trump has unveiled a 10% baseline tariff on all U.S. imports and increased duties for key trading allies, instituting an additional 34% levy specifically on Chinese imports. In retaliation, China, recognized as the world's largest soybean importer, and having previously imposed tariffs on $21 billion worth of U.S. agricultural products, has threatened further duties unless the U.S. retracts its current trade strategies. From the supply perspective, the USDA's March Prospective Plantings report anticipates a 4% decrease in U.S. soybean acreage this year, bringing the total to 83.5 million acres, which is slightly below market predictions of 83.8 million. Meanwhile, soybean stocks as of March 1 have reached 1.91 billion bushels, reflecting a 4% increase from the previous year and marginally exceeding the consensus estimate of 1.90 billion bushels.