CHICAGO: US soyabean futures traded both sides of even after touching new six-year highs early on Tuesday as the markets weighed South American rainfall against the ongoing labour strike disrupting Argentine exports, while traders took profits ahead of the US holiday break. US wheat futures also benefited from the cargo backups in Argentina, while corn traded both sides of even.
The most active soyabean futures on the Chicago Board of Trade were up 1/4 cent to $12.43-1/2 per bushel by 11:18 a.m. (1818 GMT), after reaching $12.56-1/4, their highest since June 23, 2014. CBOT wheat lifted 5-1/4 cents to $6.16-1/2 per bushel, while corn futures were 2 cent higher at $4.42 per bushel.
Rainfall in parts of Argentina and Brazil pressured US soyabeans futures, though persistent dryness remains a threat to crops amid strong global demand and tight stocks.
"The weather is a little on the negative side for grains," said Mark Schultz, chief analyst at Northstar Commodity. "What has been a friendly factor is this port strike in Argentina."
China is expected to import more than 100 million tonnes of soyabeans in 2020, a record high, according to state-owned grain trader COFCO. Meanwhile, the ongoing strike in Argentina offered support to both soyabeans and wheat markets, as the absence of grain and oilseeds originating from South America has left buyers looking to the United States for supply.
"You might see some more business coming for quick shipment for wheat, if you can't get it from Argentina," said Schultz. 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.
Additional precipitation across the US great plains may benefit winter wheat crops, adding pressure to markets.
"There were additional rain for the southern plains in the extended model," said Joe Vaclavik, president of Standard Grain.