Soy falls as cooking oil imports excluded from China tariffs
14/05/2024 (Reuters), Chicago - Chicago Board of Trade soybean futures dipped on Tuesday as analysts said the market was disappointed that U.S. President Joe Biden's administration did not include used cooking oil on a list of tariff increases on Chinese goods.
Corn futures followed soybeans down, while wheat Wv1 fell after reaching a 10-month high on worries about frosts in wheat-producing regions of Russia.
The Biden administration announced tariff increases on an array of Chinese imports. A White House list did not include Chinese used cooking oil, contrary to rumors that previously drove soy futures higher. Analysts had said tariffs on imports could boost usage of U.S. soyoil to make renewable fuels.
"Markets are disappointed; trade groups are disappointed," said Susan Stroud, founder of NoBullAg.com.
But Stroud added that "it was nothing but rumors to start with."
The most-active soybean contract on the Chicago Board of Trade (CBOT) SN24 was down 7-1/4 cents at $12.12-1/4 a bushel by 11:49 a.m. CDT (1649 GMT). Soyoil futures were down 1.81 cents at 43.34 cents per pound.
In Brazil, where heavy flooding hit the soybean and corn-producing Rio Grande do Sul state, local crop agency Conab raised its soybean production estimate from April.
On Wednesday, a monthly National Oilseed Processors Association (NOPA) report is expected to show U.S. soybean processing slowed in April from a record crush the previous month, analysts said.
The U.S. Department of Agriculture on Monday said the pace of U.S. soybean planting was slightly ahead of the five-year average, while corn planting was running behind average.
The USDA kept U.S. winter wheat conditions at a four-year high, with 50% rated good to excellent compared to 29% a year earlier, when drought slashed harvests.
Traders awaited further indications on the extent of weather damage from frosts in wheat-producing areas of Russia, while forecasts suggested greater chances of rain relief for dryness in southern Russia.
CBOT corn CN24 dropped 4-3/4 cents to $4.67-3/4 a bushel.
Wheat WN24 fell 17-1/4 cents to $6.69-3/4.