FX.co ★ Soybeans Rise, But Remain Close to Year-to-Date Lows

Soybean futures experienced a bounce back towards the $10.0 per bushel mark, although they continue to hover close to their lowest levels of the year so far. This trend is largely influenced by ongoing trade tensions, which are causing apprehension in the market. Stakeholders are keeping a vigilant eye on shifts in global trade policies that could potentially diminish the demand for U.S. agricultural exports. Notably, on Wednesday, sweeping "reciprocal" tariffs announced by President Trump were implemented, including a significant 104% duty on Chinese goods and a 20% levy on imports from the European Union. In response, China has reiterated its preference to avert a trade war while cautioning that it will respond robustly if the U.S. continues to escalate tensions. Concurrently, reports have emerged that the European Commission is contemplating the imposition of tariffs up to 25% on a broad range of U.S. exports, with soybeans specifically highlighted as one of the major targets. Market players are now anticipating the forthcoming supply and demand report from the USDA, set to be released on Thursday, for more detailed information regarding the future of the U.S. soybean market.