Soybeans, corn start 2021 on strong note; prices at 6-1/2 year top

SINGAPORE: Chicago soybean futures kicked off 2021 on a bullish tone, climbing to their highest since June 2014 on Monday as tightening South American supplies and strong Chinese demand underpinned prices.

Corn gained more ground to touch its highest in 6-1/2 years, while wheat rose.

The Chicago Board of Trade most-active soybean contract climbed to its highest since June 2014 at $13.47 a bushel. The market was trading up 2.4% at $13.42-1/4 a bushel, as of 0320 GMT on Monday.

Corn added 2% to $4.93-1/2 a bushel and wheat gained 1.3% at $6.48-3/4 a bushel.

Wheat finished 2020 in the black for the fourth straight year after touching a six-year high on Thursday and ending mostly firm.

Corn ended up 24.8% for the year and soybean prices climbed 37.2% from a year ago. Wheat added 14.6%.

Corn guided grains higher after Argentina's agriculture ministry announced that the country would suspend sales of corn for exports until Feb. 28 to ensure ample domestic food supplies.

The move triggered more buying in a futures market already on edge due to crop-threatening South American weather amid robust demand and tightening global corn and soybean supplies.

Argentina and southern Brazil are expected to remain hot and dry in the coming weeks, according to meteorologists.

Chinese demand has further supported prices as the country rebuilds the world's biggest pig herd.