On Monday, soybean futures’ prices in the Chicago Board of Trade had jumped to a fresh six-year peak as more than 100 grains cargo ships had been delayed by an Argentine port workers’ strike over wages, while a relatively drier plantation season in South America had added to further strains on harvesting.
Nonetheless, wheat and corn futures’ prices in the Chicago Board of Trade had been little-changed despite a havoc-scale backing from a sheer impasse in Argentine soybean exports.
Chicago soybean futures hit six-year peak
In point of fact, in context of a potential gridlock on trade over an unresolved post-Brexit settlement deal, Chicago grain futures’ market opened the day sharply lower, while the narratives were compounded further following reveal of a new strain of pandemic contagion, which in according to British experts, could be 70 per cent more infectious.
Nonetheless, following reveal of a media headline that the Argentine port workers, who took stance over the picketing line later last week, had extended their wage strike on Monday, eventually delaying a loading of more than 100 grain cargoes, Chicago soybean futures’ rushed on to a fresh six-year peak in the midday trading, outweighing concerns on frets over a new strain of pandemic pathogen, though wheat and corn futures’ prices remained almost dithered as beforementioned.
Adding further strains on to a potential disruption in soybean exports, investors’ concerns over a sharp decline in global soybean supplies next year, mostly due to a persistent dryness in Argentina which had troubled soybean plantation in South America this year, had ramped up soybean futures’ prices.
Citing statistics, most actively traded soybean futures’ prices in the Chicago Board of Trade added about 0.235 cents per bushel to $12.4750 per bushel (one bushel of Chicago soybean equals 27.21 kilograms) in the day’s market closure, while the futures’ prices hit a session high of $12.4875 per bushel in afternoon trading, marking up their highest level since the 27th of June, 2014.
Meanwhile, voicing a caustic caution on further rise in soybean futures’ prices over the coming weeks, a market analyst at the Price Futures Group, Jack Scoville said late in the day, “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. (Demand) is still enough to keep us on a very tight ending stocks scenario”.