U.S. Grains Start the Week Under Pressure as Soybeans Tumble Nearly 37 Cents
U.S. grain futures opened Monday sharply lower, led by soybeans, after China excluded the oilseed from new tariff relief for American farm products.
U.S. grain markets started the week under heavy selling pressure on Monday, September 28, with soybean futures leading losses after China excluded whole U.S. soybeans from a new list of agricultural products receiving tariff relief. Ahead of 9:20 a.m. CT, November soybeans were down 36¾ cents at $12.82¼ per bushel, while corn and wheat also traded sharply lower. The move matters for U.S. farmers because China remains a critical destination for agricultural exports, making tariff policy and Chinese purchasing activity major drivers of commodity prices, farm revenue and harvest-season marketing decisions.
The selloff followed a period of cautious optimism heading into the weekend. Grain traders had been waiting for additional details following talks between President Donald Trump and Chinese President Xi Jinping, particularly for signs of improved agricultural trade conditions. China subsequently announced tariff reductions covering a broad group of U.S. farm goods, including corn, wheat, sorghum, vegetable oils and meals, meat and dairy products. But whole soybeans were not included, leaving them subject to an additional 10% tariff and quickly changing the tone across agricultural futures.
Soybeans Lead a Broad Grain Market Retreat
The soybean market absorbed the strongest reaction. November soybean futures fell 36¾ cents to $12.82¼ per bushel, reflecting disappointment that the largest U.S. oilseed did not receive the same tariff treatment as several other agricultural commodities. The exclusion is especially significant because Chinese demand has historically played an important role in U.S. soybean exports. The tariff remains a commercial obstacle for private Chinese crushers, even as state-owned buyers have increased purchases of U.S. supplies during recent trade negotiations.
Corn and wheat followed soybeans lower despite being included among products targeted for tariff reductions. December corn dropped 9¾ cents to $5.18½ per bushel, while December Chicago wheat declined 18¾ cents to $6.84½. Kansas City December wheat was down 22½ cents at $7.39½, and Minneapolis December wheat fell 10 cents to $7.03½. The synchronized decline showed that traders were assessing not only individual tariff changes but also the broader outlook for U.S.-China agricultural trade, export demand and global grain supply chains.
China's decision creates an important distinction within the oilseed complex. While whole soybeans remain outside the tariff relief, the announced list includes soybean oil and soybean meal, along with other vegetable oils and meals. Chinese state-owned agricultural companies have already purchased more than 12 million metric tons of U.S. soybeans, according to Reuters reporting. That represents nearly half of the 25 million metric tons the White House has said Beijing committed to purchasing annually through 2028, although China has not publicly confirmed that annual target.
Trade Policy Adds Another Risk for U.S. Farm Margins
For U.S. producers, Monday's price action comes at a sensitive point in the agricultural calendar, when harvest progress, yields, storage capacity and marketing decisions increasingly shape farm cash flow. A decline of nearly 37 cents per bushel in soybeans can quickly alter revenue expectations, particularly for operations already managing input costs, crop insurance decisions, financing expenses and volatile basis levels. Producers and grain elevators will therefore be watching whether the initial futures reaction persists or buyers view lower prices as an opportunity.
The weakness extended beyond soybeans. Wheat's decline suggests traders remain focused on global competitiveness and export demand even when tariff barriers are reduced. Corn faces a similar calculation: improved market access can support the longer-term demand outlook, but tariff relief alone does not guarantee immediate purchases. For farmers, co-ops and commercial grain handlers, actual Chinese buying activity will ultimately carry more weight than trade announcements alone when assessing demand and marketing opportunities during the fall harvest.
Other markets offered a mixed picture Monday morning. November feeder cattle gained 20 cents to $332.18 per hundredweight, while December live cattle declined 38 cents to $221.78 and December lean hogs slipped 23 cents to $68.80. November crude oil climbed $1.51 to $93.92 per barrel, while the December U.S. Dollar Index contract rose to 100.90. A stronger dollar can create another challenge for agricultural exports by making U.S. commodities relatively more expensive for overseas buyers.
Attention now turns to implementation of the tariff changes and the next stage of U.S.-China negotiations. The two countries have agreed to establish a trade council expected to discuss reciprocal tariff reductions covering billions of dollars in goods. For the U.S. agriculture sector, however, soybeans remain a central unresolved issue. Monday's market reaction shows how quickly trade policy can move commodity prices and farm revenue expectations, leaving growers to balance harvest fundamentals against geopolitical risk as the new marketing week unfolds.
