InfoSAWIT, BEIJING — Soybean futures prices in Chicago edged higher on Tuesday (April 8, 2025), driven by a weakening US dollar. However, market concerns over trade tensions between the United States and China kept prices near this year's lowest point.
According to Reuters, the most active soybean contract on the Chicago Board of Trade (CBOT) rose by 0.51% to US$9.88 per bushel at 08:38 WIB. Previously, on Friday, soybean prices had plummeted to US$9.70 per bushel, the lowest level of 2025.
The trigger was a threat from US President Donald Trump on Monday, stating he would impose an additional 50% tariff on imported goods from China starting Wednesday unless Beijing cancels its retaliatory 34% tariffs on US products.
In response, China's Ministry of Commerce on Tuesday expressed its rejection of what it termed "extortion" from the US and emphasized that it would take retaliatory measures if necessary.
Despite the escalating tensions, some market participants are beginning to feel optimistic that the threat of additional tariffs will be softened in the near future.
“Trump's conversation with Vietnam and the 'concessions' reportedly agreed upon, along with domestic political pressure now spilling over to Wall Street, have led traders to believe that this is merely a short chapter in tariff maneuvering,” said Ole Houe, Director of Consulting Services at IKON Commodities, Sydney.
Meanwhile, corn prices also rose slightly by 0.16% to US$4.65 per bushel, supported by increased exports driven by a weaker dollar—an element that enhances the competitiveness of US agricultural products in the global market.
Weather also played a supportive role, as heavy rains and flooding in the Ohio Valley and northern Delta regions caused delays in corn planting, according to reports from Maxar, a weather forecasting agency.
Wheat prices also increased by 0.61% to US$5.40 per bushel due to concerns over drought in the Central and Southern Plains of the US. Houe added that wheat prices had previously fallen too deeply due to trade war issues, even though the impact on wheat is relatively small.
On Monday, the US Department of Agriculture (USDA) reported that 48% of US winter wheat crops were in good to excellent condition. Although this is higher than analysts' expectations, it is still down from 56% during the same period last year.
On the other hand, market participants were reported to be net buyers of corn, soybean meal, and wheat futures contracts, while being net sellers of soybean and soybean oil contracts during Monday's trading, according to traders. (T2)
