Soybeans hit new 6-1/2-year high on South America supply worries

PARIS/SYDNEY: US soybean futures rose for a fourth consecutive session on Tuesday to set a fresh 6-1/2 year high as a labour strike disrupting Argentine soy exports heightened supply concerns in South America where crops have faced dry weather.

Corn edged higher with support from soybeans, while wheat eased.

The most active soybean futures on the Chicago Board Of Trade were up 0.5% at $12.53-1/2 a bushel by the end of the overnight session. Earlier, they reached their highest since June 2014 at $12.56-1/4.

The market has been sensitive to any potential setback in South American supply as brisk demand has already absorbed much of the new US soybean crop.

"Reduced supplies of soybean before the arrival of the Brazilian crop continue to push prices up," consultancy Agritel said in a note. "On the short end, availabilities are also curbed by the current dockworkers strike in Argentina."

More than 100 cargo ships were kept from loading agricultural goods in Argentina on Monday as a wage strike by grains inspectors and oilseed workers stretched into its second week, paralysing shipments from the world's largest soymeal exporter.

US soybean export inspections, meanwhile, topped 2.5 million tonnes for the week ended Dec. 17, up 3.1% from the prior week, the US Department of Agriculture said.

China is expected to import more than 100 million tonnes of soybeans in 2020, a record high, said an executive with state-owned grains trader COFCO on Tuesday.

Traders were continuing to monitor rain forecasts in South America after a drought-affected start to the growing season. Significant moisture was still expected in parts of Brazil in the week ahead, but Argentina was set to be relatively dry.

CBOT corn futures were up 0.4% at $4.41-3/4 a bushel, while wheat shed 0.8% to $6.06-1/4 a bushel.

A firm dollar was tempering US wheat export prospects even as Russian steps to curb its shipments raised prospects for other countries to win extra demand.