June 19, 2018 / 2:15 AM / 6 months ago

China soymeal futures rally on Beijing's tariffs on U.S. soybeans

BEIJING (Reuters) -

**China’s most active soymeal futures rose 4.2 percent on Tuesday to 3,073 yuan ($476.75) a tonne, after Beijing imposed a 25 percent duty on soybean imports from the United States

**The jump was the biggest daily gain since April 9, when markets reopened after Beijing first proposed a tariff on U.S. soybeans in retaliation over Trump’s trade measures against China

**China buys around a third of its soybeans from the United States to crush into meal to feed the world’s biggest herd of pigs and poultry

**The implementation of the tariff from July 6, announced late on Friday in retaliation for Trump’s imposition of tariffs on Chinese goods, will push up the cost of soybeans, making soymeal more expensive

**”The changes in premiums of Brazilian soybeans are also highly dependent on Sino-U.S. trade relations,” said Cofco Futures analyst Yang Linqin in a note on Tuesday

**China’s futures markets were closed on Monday for a public holiday

**Chicago soybean futures slid on Tuesday to their lowest since March 2016, while corn dropped for a fifth consecutive session on concerns over a deepening trade war between Washington and Beijing.

**Price premiums over Chicago futures for soybean shipments from Brazilian ports jumped in recent days on renewed demand, likely from Chinese buyers, and logistic hurdles in Brazil that have reduced grain availability at the ports.

Reporting by Dominique Patton; editing by Richard Pullin

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