Oil prices fell on Tuesday as investors assessed an intensifying trade war between the United States and China, while higher tariffs are likely to leave their mark on demand for US soybeans.

Brent futures (CO1:COM) held steady at $64.22 a barrel, and U.S. West Texas Intermediate crude futures (CL1:COM) ticked 0.2% higher to $60.82/bbl. The benchmarks hit their lowest since April 2021 on Monday.  

Commerzbank, meanwhile, said that China's counter-tariffs of 34% on all imports of U.S. goods, which are due to come into force this week, are very likely to result in significantly lower purchases by China, and applies to soybeans in particular.

Last year, U.S. soybean exports amounted to 52.4 million tons worth $24.6 billion, according to the USDA. China accounted for a good half of this.

"In the short term, not much will change, as most of China's soybean imports will come from Brazil in the coming months for seasonal reasons. With the new crop in autumn, Chinese purchases of soybeans in the U.S. would usually pick up again. This is unlikely to happen this year," the Bank said.

"As in autumn 2018, China is likely to continue to source most of its soybean imports from Brazil next autumn. Demand for US soybeans is therefore likely to be significantly lower, which should also have a negative impact on the price outlook."

This could also lead to affect US farmers' planting intentions.

According to a survey published by the USDA a week ago, they had already planned to reduce soybean acreage by 4% compared to the previous year. The reduction could now be even greater, Commerzbank said. 

Some of the biggest agricultural companies in the American market today are Archer-Daniels-Midland (ADM), Bunge (BG), and Tyson Foods (TSN).

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