SYDNEY: US soybean futures edged higher on Thursday after sliding to their lowest in nearly two months in the previous session, although concerns that the imposition of Chinese tariffs may temper demand for US cargoes capped gains.
The most-active soybean contract on the Chicago Board of Trade was up 0.3 percent at $10.18-3/4 a bushel by 0413 GMT. It closed 2.2 percent lower on Wednesday when the contract hit a trough of $9.83-1/2, its weakest since Feb. 9.
Despite the price recovery in soybeans, traders said the introduction of new Chinese tariffs will depress demand for US supplies.
Soybeans were among 106 US products that China said on Wednesday it would hit with 25 percent tariffs, less than 11 hours after US President Donald Trump's administration targeted 25 percent tariffs on some 1,300 Chinese industrial technology, transport and medical products.
China is the world's top importer of soybeans, gobbling up about 60 percent of the oilseed to feed its livestock industry, also the world's largest.
"It is going to mean surplus soybeans, and lower soybean prices in the US," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.
"Brazilian farmers would be able to sell more and Argentinean farmers will get paid well for the smaller amounts they have this year."
Corn futures rose 0.2 percent to $3.81-3/4 a bushel, having slumped 1.9 percent in the previous session.
Wheat climbed 1 percent to $4.60-1/4 a bushel.
The US Department of Agriculture said on Monday that only 32 percent of the US winter wheat crop was in good to excellent condition, down from 51 percent this time last year. It was the lowest rating for this point in the crop year since 2002.
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