Soybeans proved to be a big battleground during the previous Trump administration and the trade war that erupted between the U.S. and China. (Nikkei montage/Source photo by Reuters)

U.S.-China trade spat to dull investor sentiment on soybeans

Futures are hovering around $10, higher than where they were before the pandemic

AKANE OKUTSU, Nikkei staff writer

January 6, 2025 06:00 JST

TOKYO -- The soybean market remains bearish due to concerns that the U.S.-China trade spat could kick up a gear when U.S. President-elect Donald Trump is inaugurated in two weeks, as China's higher tariffs could lower demand for a U.S. export already in ample supply.

Soybeans were among the commodities clearly affected by the trade war during Trump's first term. The market's fundamentals are swayed by the two players -- the U.S., the world's major producer, and China, the biggest importer. Prices are being pressured by expectations that trade tensions will deepen under Trump 2.0.