Soybeans Hit Six-Year High On South American Supply Worry
Chicago soybean futures rose on Monday, touching their highest in six and a half years on concern about the impact of dry weather on South American crops and as a strike in Argentina curbed export shipments.
Wheat fell for a second session after hitting 2-month highs just before the Christmas break.
Chicago Board of Trade most-active soybeans were up 0.3% at $12.68-1/4 a bushel at 1143 GMT. Earlier on Monday soybeans hit their highest since June 2014 at $12.80-1/2 a bushel.
Corn rose 0.4% to $4.53 a bushel after hitting its highest since July 2019 earlier on Monday. Wheat fell 0.6% to $6.23-1/4 a bushel.
Argentina's soybean planting area could be smaller than previously expected due to unusually dry weather, the Buenos Aires Grains Exchange said.
“Argentina and parts of South Brazil are still too dry, which is not good for soybeans and corn,” said Matt Ammermann, StoneX commodity risk manager. “This is supporting prices today although soybeans have pulled back from their highs.”
“Some rain fell in Argentina last week but it was not enough. The forecasts for Argentina as we move into the important soybean and corn-planting month of January are still looking dry.”
A strike by Argentine oilseed workers and grains inspectors has disrupted the country’s soyoil, soymeal and other exports, although Argentina’s chamber of soyoil manufacturers and exporters on Sunday improved an offer to striking workers and further talks are expected.
"Wheat is drifting down from last week’s highs with little new impetus in the session so far," Ammermann said. "Funds and other investors generally close their books at the end of the year and so buying interest may be weaker than usual.”