Soybeans slide 2% below $9 amid renewed trade concerns

Soybean futures fell over two percent as the dollar index gained ground, following a basket of data from the US, the world's largest soybean producer and exporter, and after reports that US administration is pondering 25% additional tariffs on $200 billion worth of Chinese imports, with China, the world's largest soybean importer, criticizing "harassment" of its official negotiators with US counterparts by continuously threatening more tariffs. 

As of 05:57 GMT, soybean futures due on December 15 fell 2.09% to $8.9975, while the dollar index added 0.12% to 94.66 from the opening of 94.55. 

USDA Inspections 

The US Department of Agriculture reported the inspection of 740.3 thousand tonnes of soybeans destined for exports in the week ending July 26, up from 728.1 thousand in the previous reading, with total inspected product for the marketing year 2017-2018 now amounting to 52.4 million tonnes, compared to 54.5 million last year. 

US Treasury Secretary Steven Mnuchin lauded the the recent 4.1% growth rate for the economy in the second quarter, expecting a few years of sustained growth above 3%. 

He said that US President Donald Trump's talks with European Commission President Jean-Claude Juncker were focused on removing barriers before the American agricultural sector, and on inflation, he conceded that the Federal Reserve has to increase interest rates as the economy gears up and grows faster. 

On another note, US Secretary of Agriculture Sonny Perdue recently announced a $12 billion grant for farmers in food purchases and trade incentives to counter the harm done by the tariff dispute with China and the European Union.  

Other US data showed the private sector added 219 thousand new jobs in July, up from 181K in June, and beating expectations of 186 thousand handily. 

US ISM manufacturing PMI slowed down to 58.1 in July from 60.2, missing expectations of 59.4, while ISM manufacturing prices also slipped to 73.2 from 76.8 in June, missing estimates of 75.5 as well. 

The Federal Open Market Committee voted today to maintain overnight interest rates unchanged between 1.75% and 2.00% as expected, with Chair Jerome Powell currently holding his post-meeting press conference to lay out the future of monetary policy.