Soybean futures advanced in Chicago as Argentina's farmers decided to stop selling crops and livestock until next week in the third protest in two months over export taxes.
The farmers' decision was triggered by the President Cristina Fernandez de Kirchner decision to cancel talks on the controversial taxes. The grain and soybean and cattle sales disruptions are slated to end June 2, he said. "The halt of exports from Argentina helped push Chicago soybeans higher, despite the bearish factors of the dollar's rebound and a sharp decline in crude oil'' according to analysts from Japanese trader Kanetsu Asset Management Co.. Argentina is the world's third-largest soybean exporter, second in corn and very significant in wheat and beef. Soy prices have gained 66% in the past year touching a record U$S 15.865 on March 3. In the US about 52% of soybeans were planted as of May 25, compared with 27% a week earlier, 74% a year earlier and the five-year average for the date of 67%, reported the US Department of Agriculture. Wheat for July delivery was slightly down at U$S 7.525 a bushel. The contract reached a record U$S13.495 on Feb. 27 but has since been as low as U$S 7.40 on May 23, the lowest since Aug. 29 and down 45% from the record, according to data from the US Department of Agriculture. The market was influenced by statements from Russian Agriculture Minister Alexei Gordeyev who said there was no need to extend an export duty on wheat after July 1 as the government expects a "good" harvest. He reiterated the ministry grain crop forecast of at least 85 million metric tons. In Australia wheat output may be less than previously forecast because of dry weather in the nation's east. The harvest may total 20 million to 24 million tons, instead of the April estimate of 23-26 million tons. Rabobank analysts forecast wheat may average 7 US dollars a bushel in the third quarter, down from 8 a bushel in the second quarter as global output jumps 7% percent to a record 650 million metric tons.