SOYBEANS CLOSE LOWER ON U.S.-CHINA TRADE CONCERNS

CHINESE VICE PREMIER EXPECTED IN WASHINGTON FOR NEGOTIATIONS THIS WEEK.

Soybeans closed lower Monday on worries about trade talks this week between the U.S. and China.

A delegation led by Chinese Vice Premier Liu He is expected in Washington on Jan. 30-31 for high-level talks about trade with U.S. representatives.

While the fact that the sides are talking is a positive, U.S. officials said they don’t see an agreement by the end of the negotiations this week. Commerce Secretary Wilbur Ross said last week the sides are still "miles and miles" apart amid ongoing concerns from the U.S. side on intellectual property and the trade deficit.

Michael Pillsbury, the director for the Center for Chinese Strategy at the Hudson Institute, who reportedly is an adviser to the president, also has said he doesn’t expect negotiators to come to a trade agreement during the talks.

The U.S. and China have a temporary deal agreed upon by presidents Donald Trump and Xi Jinping in early December under which Washington has delayed raising tariff rates to 25% from 10% and Beijing agreed to purchase more agricultural products and curb levies on American automobiles.

Soybeans for March delivery fell 2¢ to $9.23 1/4 a bushel on the Chicago Board of Trade. Soymeal lost $1.50 to $312.40 a short ton, and soy oil added 0.23¢ to 30.26¢ a pound.

Corn declined 1/2¢ to $3.79 3/4 a bushel.

Wheat for March delivery fell 2¢ to $5.18 a bushel while Kansas City futures dropped 3 1/4¢ to $5.05 1/4 a bushel.