Soybeans plumb two-month low, dollar regains footing

Soybean futures fell over one percent in American trade to July 16 lows, when they plumbed 2008 lows, while the dollar index climbed off July 31 lows, amid forecasts of record US output despite the escalating US-China trade dispute. 

As of 07:58 GMT, soybean futures due in November fell 1.15% to $8.14, settling new record lows, while the dollar index rose 0.13% to 94.62 away from seven-week lows. 

The White House announced new 10% tariffs on $200 billion worth of Chinese imports, to be increased to 25%, after the US already imposed 25% tariffs on $50 billion worth of Chinese imports, with China retaliating with 5-10% tariffs on $60 billion worth of US products. 

President Donald Trump threatened to impose new tariffs on $267 billion worth of Chinese imports if Beijing retaliated to the latest ones. 

US trade secretary Wilbur Ross said China "is out of bullets" to retaliate against US tariffs, noting that the measures are intended to change Chinese behavior, with close studying to guarantee limited increases to inflation. 

China filed another complaint against the US to the World Trade Organization, which isn't the first time China has done such a move. 

Soybeans Suffer 

Soybean futures plumbed decade lows in mid July after the US imposed 25% tariffs on $34 billion worth of Chinese imports, with China retaliating with similar ones, before Washington imposed yet new tariffs on $16 billion, with China also retaliating. 

China is the world's largest soybean importer, cornering 60% of the traded soybean market in 2017. 

USDA Reports Forecasts 

In its latest monthly report on global agricultural supply and demand, the US Department of Agriculture raised forecasts for soybean output in the US to 4.693 billion bushels, a record high, and up from 4.586 billion in the August report. 

It's worth mentioning China imported $14 billion worth of US soybeans in 2017, with analysts expecting China to continue relying on US imports for some time before attempting to switch suppliers.