Soybeans are getting whacked after USDA boosts production outlook

Farmer
Jim Schielein inspects a field of soybeans on his farm in Dixon,
Illinois
Jim
Young/Reuters

Soybean futures fell Friday after the US Department of
Agriculture boosted its outlook for harvests. 

Prices fell 2.5% to $8.65 a bushel at 12:45 p.m. ET. 

USDA expects global ending stocks at 105.9 million tons
through 2019, above the 99.5 million ton estimate in a Bloomberg
survey. Inventories stood at 95.6 million tons in the past
season and 98.3 million tons in previous report.

Soybean prices have been under pressure amid an ongoing trade war
between the US and China, the world’s largest soy importer. The
countries have imposed tariffs on roughly $50 billion worth of
goods each and threatened to slap additional duties on nearly all
products they trade. 

The US tariffs against China include a 25% import tax on
soybeans, making American soybeans more expensive for one of its
biggest customers. China has since been trying to reduce domestic
reliance on American soybeans by lowering trade barriers with
other exporters of the legume.

Soybean prices are down 4.6% year-over-year. 

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