Chicago soybean futures were firmer in Asian trading on Monday on worries over a sharp reduction in production in drought-hit Argentina despite some relief from recent rains, with strong US exports also providing support.
Wheat futures rose as a cold snap in the US Plains fanned concerns about supply along with potential escalations in the Russia-Ukraine conflict.
Corn prices also advanced as traders watched for signs of fresh demand from China.
The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 1 percent at $15.24-1/2 a bushel.
“In the short term, the market is expected to continue to be supported by the sharp reduction in soybean production in Argentina,” Zhongzhou Futures analysts said in a note.
Months of drought have delayed planting and prompted a reduction in projected harvests in the South American country, the world’s largest exporter of processed soy and third-largest corn exporter.
Recent rains, however, had brought badly needed relief to parched lands.
Strong US soybean exports this month and technical buying have also provided support to prices at above the $15 a bushel mark, Zhongzhou analysts said. – Reuters
