Soyabean, soya meal prices jump on Argentina drought concerns
Soyabean and soya meal prices jumped on worries about drought in Argentina, a key producer and exporter, as rains last week fell short of expectations.
Dry weather is forecast for the next 5 days, and soyabean prices gained 2 per cent in Chicago’s CBOT above $10 a bushel for the first time in two months, while soya meal rallied 4 per cent to $358.2 a short ton, the highest since July 2016.
Argentina is the world’s largest soya meal exporter, accounting for almost half the international market.
“Meal appears to be making a massive breakout of a trading range that has been in place for eighteen months,” said Michael McDougall at ED&F Man Capital Markets.