Soybeans end lower on progress in Argentine labor talks

CHICAGO: Chicago soybean futures fell on Monday after touching 6-1/2-year highs overnight ahead of contract talks scheduled in Argentina's oilseed workers' strike.

Wheat slipped as US precipitation aided winter crop development, while corn gained on export optimism.

Chicago Board of Trade most-active soybeans ended down 7-1/4 cents to $12.57-1/4 per bushel, their biggest drop since Dec. 8, after reaching $12.80-1/2 per bushel, their highest since June 23, 2014.

Corn added 5-1/2 cents to $4.56-1/2 per bushel, its highest since July 15, 2019, while wheat settled 12-3/4 cents lower at $6.14-1/4 per bushel.

A labor strike by oilseed workers and grain inspectors has idled Argentina's ports, backing up more than 140 export ships, though government-sponsored talks are scheduled for Tuesday to try to hammer out a 2021 compensation package.

"The port strike in Argentina looks to be coming to an end," said Jeff French, analyst at Top Third Ag Marketing.

Much-needed rainfall in Argentina and Brazil also weighed on soybeans and corn, though concerns remain for crop prospects.

Exporters sold 233,700 tonnes of soybeans and 33,000 tonnes of soybean oil on Monday for delivery to unknown destinations during the 2020/2021 marketing year, according to the US Department of Agriculture.

The sales were muted by the lowest weekly US export inspections for soybeans since September, with 1.4 million tonnes inspected for export during the week ending Dec. 24, below trade expectations.

Corn, meanwhile, was supported by strong weekly exports and new sales of nearly 150,000 tonnes to unknown destinations. For the week, nearly 994,000 tonnes of corn was exported, above trade expectations.

Wheat fell as traders weighed recent precipitation in the US Plains against a stabilizing global supply outlook.

"The two biggest features are the weather in the United States and the Russian export tax," said Mike Zuzolo, president of Global Commodity Analytics. "Better snow and rain in the hard red wheat belt are probably pulling out some bulls."