Soybean Futures Drift After China Signals Tariff Cuts on US Farm Goods
Updated
Updated · Bloomberg · Jul 2
Soybean Futures Drift After China Signals Tariff Cuts on US Farm Goods
3 articles · Updated · Bloomberg · Jul 2
Summary
Soybean futures swung between small gains and losses Thursday as traders assessed Beijing’s statement that tariff reductions on US agricultural products could clear the way for Chinese buying.
China’s Commerce Ministry said the two sides agreed in principle to reduce tariffs after recent talks, giving the market a fresh signal that trade barriers may ease.
US soybeans could become cheaper than Brazilian supplies if the cuts take effect, a pricing shift that would improve the competitiveness of American exports to China.
The statement followed a Wednesday phone call between Chinese Foreign Minister Wang Yi and US Secretary of State Marco Rubio, linking the market reaction to a broader thaw in bilateral trade contacts.