On the background of the strike and a drought in Argentina again increased the prices of soybean and corn

the Market had expected from the meeting of the representatives of the Chamber of producers and exporters of soybean oil from Argentina with the striking workers, which was held on December 29, conflict resolution and reconstruction of ports, however, success in the negotiations was not achieved. This has led to a rapid increase in the prices of soybeans and butter, corn on the stock exchange in the United States, because the US is the only alternative supplier of these crops in the event of a reduction in supply from Argentina.

More rates supports the forecast of dry weather in Argentina next week, as well as data on the deficit of precipitation in the South of Brazil.

In Argentina, the weekend rains, particularly in Western regions and low levels of rainfall expected in the next 2 days, after which during the week would be dominated by dry weather with temperatures much above normal, which will increase stress to crops and will allow farmers to complete sowing.

Analysts had expected in the last week of the year, traders will not be actively buying the futures, reaching multi-year highs and at any time may turn down. But at yesterday's news from Argentina futures for soybean meal on the stock exchange in Chicago rose by 2.8% to 465,5 $/t, soybeans – by 3.5% to 475,5 $/ton, soybean oil – by 1.8% to 915,1 $/tonne, maize by 3.9% to 183,3 $/t

Hedge funds stepped up purchases in anticipation of further growth of prices in the short term.

Today negotiations in Argentina will continue, so until the New year, the situation could be resolved. However, the precipitation deficit has led to lower forecasts of soybeans and corn in Argentina and to a small extent in Brazil. In the January USDA report will be significantly revised the global balance sheets of soybean and maize in terms of production and end stocks that will continue to support prices.