GRAINS-Chicago soybean prices fall on China's counter tariffs

BEIJING, April 7 (Reuters) - Chicago soybean futures fell on Monday and hovered near its lowest level this year hit in the previous session, pressured by China's announcement of an additional 34% tariff on all U.S. goods, with soybeans expected to be hardest hit.

Corn also declined, while wheat rose.

FUNDAMENTALS

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 fell 0.51% to $9.72 a bushel as of 0005 GMT.

Corn Cv1 slid 0.49% to $4.58 a bushel while wheat Wv1 rose 0.19% to $5.30 a bushel.

In response to U.S. reciprocal tariffs, Beijing imposed additional tariffs of 34% on all U.S. goods, which are on top of the 10-15% tariffs placed on roughly $21 billion worth of agricultural trade in early March.

U.S. soy exports are more vulnerable than corn or wheat as China is the world's largest soybean importer, with Brazil expected to gain more market share, traders and analysts have said.

Brazilian farmers have already harvested 85.83% of the 2024/2025 soybean crop, compared to 79.36% at the same time last season, according to Patria Agronegocios.

Protests and poor roads have disrupted shipping of Brazil's bumper soybean crop in recent days via the river port of Miritituba in the Amazon rainforest, worrying global companies including Cargill and Bunge BG.N which have important operations.

Mexico, the top U.S. corn buyer, avoided Trump's sweeping reciprocal tariffs, offering some relief to corn markets.

The USDA will release its monthly update on global supplies and demand for grains on Thursday.

Algeria's state grains agency OAIC has issued an international tender to purchase a nominal 50,000 metric tons of durum wheat sourced from optional origins, European traders said on Sunday.

Commodity funds were net sellers of Chicago Board of Trade soybean, soymeal, soyoil and wheat futures contracts on Friday, traders said. Funds were net buyers of corn futures, traders said. COMFUND/CBT

MARKETS

Asian markets faced more turmoil on Monday as fears of a global trade war saw Wall Street futures plunge, while investors wagered the mounting risk of recession could see U.S. rates cut as early as May.MKTS/GLOB

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