Soybean futures plunged Tuesday to their lowest in more than nine years following renewed concerns about a U.S.-China trade war., reports CNBC.
A war of words between the two countries has picked up, following announcements of tit-for-tat tariffs on $34 billion worth of imports late last week. In retaliation against planned U.S. duties, Beijing intends to impose a 25% tariff on 545 U.S. goods, including soybeans.
Soybean futures for July delivery dropped more than 7% to a low of $8.415 a bushel, their lowest since March 2009, according to Thomson Reuters.
If Beijing imposed a 10% tariff on U.S. soybeans, total American soybean exports could drop by 18%, according to a study for the U.S. Soybean Export Council by Purdue University.
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