China’s Soymeal Surges on Supply Worries as Beijing Retaliates

China's soybean meal prices have surged due to renewed trade tensions with the US, with Beijing imposing a 34% duty on all US imports from April 10. This includes soybeans, potentially halting shipments from the US, its second-largest supplier. As a result, the most actively traded soybean meal futures on the Dalian Commodity Exchange rose by up to 2.7%. China is diversifying its grains imports to reduce reliance on American crops, buying more from Brazil, but faces competition and higher costs from the US. The country has enough soybean supply in the next few months, but faces tight supplies from the fourth quarter.

China’s soybean meal prices surged on the first day of trading after a holiday, as a renewed trade war between the world’s two largest economies threatened supplies. Beijing on Friday hit back at Washington’s tariffs, imposing a 34% duty on all US imports from April 10. The hefty duties include soybeans and threaten to halt shipments of the oilseed to China from its second-largest supplier, and roil a trade that was worth more than $12 billion in 2024. China had already announced a 10% tariff on soybeans and other farm products from the US last month, which was seen as a muted response to US President Donald Trump’s initial protectionist measures. But this time, trade tensions have escalated, brokerage China Futures said in a note on Monday. The latest round of tariffs has caused worries over future US soybean exports and that China’s import costs will be pushed up, the brokerage said. The most actively traded soybean meal futures on the Dalian Commodity Exchange rose as much ...