Soy Bulls Rampant as Prices Roar to Six-Year Highs on Argentina
(Bloomberg) -- Soybeans climbed to their highest in more than six years as strikes disrupt shipments from Argentina, the top exporter of soybean meal and oil, dry weather threatens crops in the country and the dollar weakens.
Futures in Chicago advanced as high as $12.21 a bushel, the strongest since June 2014, before trading around $12.17. Soybean meal, used in animal feed, increased for a sixth day, the longest winning streak since March.
Processors in Argentine export hubs unanimously agreed to extend a strike over wages for another 24 hours, the union said. The stoppages have crippled shipments, with dozens of vessels unable to load cargoes. Other drivers are strong export demand for U.S. beans on the back of a weak dollar, and dry weather at a crucial time for crop development in Argentina. Still, abundant rains in central Brazil are likely to improve the picture there.
In other markets, wheat built on Thursday’s gains, while corn climbed for a sixth day as weather concerns drove prices, according to Tobin Gorey, commodity strategist at Commonwealth Bank of Australia. “South American weather never quite ‘plays ball’. The just‑in‑time rainfall delivery in this hot southern summer means the market continues to walk a tightrope,” he said.
©2020 Bloomberg L.P.