US agricultural stocks fall, China's additional tariffs raise concerns

Shares of U.S. agricultural commodity traders fall after China imposes 34% additional tariffs on U.S. exports to the country

China remains the largest market for U.S. agricultural products, but imports of U.S. farm goods dropped last year to $29.25 billion from $42.8 billion in 2022

The most-active soybean contract on the Chicago Board of Trade was down 4% by 1450 GMT (10:50 a.m. ET), heading for its biggest daily fall since September 2023

Tariffs would increase the cost for soybeans to customers in China, primarily animal feed producers, said Morningstar analyst Seth Goldstein

"This announcement may lead to China looking to source more soybeans from Brazil and Argentina, but ultimately, I don't see a huge impact to the global supply and demand balance for soybeans. If China purchased less U.S. soybeans, then the U.S. would sell more to other countries" - Goldstein added

Top U.S. grain traders ADM ADM.N down 8.3%, Bunge BG.N down 5.8%

Mosaic MOS.N falls 10%, Intrepid Potash IPI.N down 7.8%, FMC Corp FMC.N down 7.6%, Corteva CTVA.N down 7.4%

Shares of Canada-based Nutrien NTR.TO down 4.8%