US soyabean futures touched a one-week high on Monday after crop-growing areas in Argentina received less rain than expected, increasing concerns that drought in the world's No. 3 exporter will tighten global supplies. Argentina's dryness took center stage as some traders said fears about a possible US-China trade war were easing. US farmers and exporters have worried for months that China, the world's top buyer of soyabeans, would restrict US imports due to rising bilateral tensions.
China imported $19.6 billion worth of US farm goods last year, with soyabeans accounting for $12.4 billion. On Friday, its Commerce Ministry said the Chinese government may impose a higher tariff on US pork imports, but made no announcement about potential duties on soya. The most-active soyabean contract rose 4-1/2 cents to $10.32-3/4 a bushel at the Chicago Board of Trade by 11:20 CDT (1620 GMT). The contract earlier set a one-week peak of $10.40-1/4.
CBOT corn touched a one-week peak at $3.80-3/4, before slipping 3 cents lower to $3.74-1/4 a bushel. CBOT wheat dipped 3-1/4 cents to $4.57 a bushel after hitting a one-week high at $4.63-3/4.
In Argentina, rains that were expected to bring relief to soya- and corn-growing areas failed to materialize over the weekend, all but killing hopes that yields might recover from four months of unrelenting dryness. More heat and dry weather are expected.
The Buenos Aires grains exchange last week cut its forecast for Argentina's soyabean harvest to 39.5 million tonnes from 42 million tonnes.
Coming up, traders are waiting for the US Department of Agriculture (USDA) on Thursday to issue data on US grain stocks and estimates for spring US plantings. Farmers are expected to have planted more soya than corn for the first time since 1983, according to a Reuters poll. The United States is the world's biggest producer and exporter of corn, and the No. 2 soyabean exporter after Brazil.
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