U.S. grains: Soybeans add new highs on Argentine supply disruptions

Chicago | Reuters – Chicago soybeans climbed for a sixth consecutive day as a labor strike in Argentina stalls through the Christmas holiday, curbing global supply.

Corn rose for a 10th consecutive session, supported by prolonged South American dryness that could hurt harvest prospects. Wheat slipped on holiday profit-taking, but held near two-month highs.

The most-active soybean contract on the Chicago Board of Trade (CBOT) added 4-1/2 cents to $12.64-1/2 per bushel, after reaching $12.75 per bushel, its highest since June 23, 2014.

CBOT corn gained 3-3/4 cents to $4.51, after notching $4.51-1/2, its highest since July 15, 2019. Wheat fell 2-3/4 cents to $6.27 a bushel.

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Argentine oilseed workers and grains inspectors on Wednesday said they will spend Christmas on strike, further hampering agricultural exports in a two-week-old labour dispute.

The country’s 2020/21 soybean planting area could turn out to be smaller than expected due to unusually dry weather, the Buenos Aires Grains Exchange said on Wednesday.

“Everybody’s got their eye on Argentina. They’re supposed to get some rains down there next week,” said Ed Duggan, senior risk management specialist with Top Third Ag Marketing.

Corn edged higher, supported by exports amid a weaker U.S. dollar, while rains forecast for Brazil and Argentina capped gains.

“The strong demand and continued tightness in corn and beans has continued to push us to the upside, and the slow producer selling has lead to the strength,” said Jason Roose, analyst at U.S. Commodities. “The dollar and South American weather are going to be key the next 30 days.”

Wheat traders monitored the risk of Argentine shipments being disrupted, just as Russian exports are expected to slow due to measures to curb domestic prices.

–Additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore.

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