CHICAGO: Chicago soyabeans continued to rally on Wednesday as an Argentine labor strike slowed exports, even as rain moving into the country relieved some concern over drought.
Wheat and corn followed soyabeans, supported by Argentina’s export woes and concerns over prolonged dryness for developing South American crops.
The most active soyabean futures on the Chicago Board Of Trade gained 12-1/2 cents to $12.62-1/2 per bushel by 12:14 p.m. (1814 GMT).
CBOT corn added 5-3/4 cents to $4.49 per bushel, while wheat lifted 14-1/4 cents to $6.31-1/4 per bushel.
Long-term dryness outweighed signs of precipitation in Argentina and showers across Brazil earlier this month, traders said.
Meanwhile, near-term soyameal shipments have been hampered by stalled labour talks at Argentine ports.
The markets were unfazed as US soyabean export sales fell to a marketing-year low of 352,800 tonnes the week ended Dec. 17, down 62% from the previous week and 47% from the prior 4-week average and well below trade estimates of 550,000-800,000 tonnes.
“The fact that the demand was a little softer this morning isn’t a major concern,” said Brian Hoops, senior marketing analyst at Midwest Market Solutions. “It wasn’t unexpected.”
Expectations for continued export demand have replaced softer domestic consumption, said John Zanker, market analyst at Risk Management Commodities.
Archer Daniels Midland said on Tuesday it was closing a corn processing plant in Nebraska due to high inventory through Dec. 27.
“We’re going to struggle with the ethanol industry for the next three months,” Zanker said. “Corn is fairly priced, given the projected carryout.”
Wheat moved higher as traders monitored the impact of the strike in Argentina on wheat shipments.
Despite recent strength, an overall weaker dollar adds optimism to US wheat exports, said Hoops.
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