United States soybeans climbed to six-year highs this week as weather and export troubles in Argentina outweighed concerns of a new coronavirus strain hitting Britain. Corn and wheat futures traded near even as soybeans supported the grains complex.
More than 100 cargo ships were kept from loading agricultural goods in Argentina on Tuesday, as a wage strike continued.
Also, continued dryness inhibits soybean planting in Argentina, while concerns grow about global soybean supplies next year.
Soybean export inspections topped 2.5 million tons for the week ending Dec. 17, up 3.1% from the prior week, according to the U.S. Department of Agriculture.
“With the weather down in South America, Argentina and Brazil both, and the situation here, I think we’ve got some chances for some decent moves,” said Jack Scoville, market analyst at the Price Futures Group. “(Demand) is still enough to keep us on a very tight ending stocks scenario.”
Wheat inched higher as tightened exports from Russia support wheat demand from the United States and other global producers, including Ukraine, where export prices strengthened following Russia’s export tax announcement.
Ukraine vowed it would not impose similar export restrictions.
Wheat exports climbed to 391,219 tons, up 49% from the previous week, according to the USDA.
Corn was pressured by rains in Brazil, strengthening the drought-stricken crops competing with U.S. exports despite lower exports sales compared with the prior week.
“Weekly exports in corn will stay relatively decent. Does that mean every week has to be good? No,” said Tom Fritz, commodity broker at EFG Group.