GRAINS-Soybeans firm on Argentina dry weather, China demand hopes

By Gus Trompiz and Naveen Thukral

PARIS/SINGAPORE, Dec 27 (Reuters) – Chicago soybean futures rose for a third consecutive session on Wednesday as dry conditions in key producer Argentina were set to continue, while China’s dismantling of COVID-19 restrictions raised hopes of improved demand.

Soybeans traded below Tuesday’s six-month high, however, while corn and wheat were little changed as market optimism over China easing COVID-related rules was tempered by a wave of infections there.

The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.9% at $15.02 a bushel by 1103 GMT.

It held below Tuesday’s peak of $15.22-3/4 and continued to face chart resistance at the $15 threshold.

Expected rainfall over the weekend in Argentina missed large portions of its parched growing region, according to analysts, threatening further planting difficulties for the world’s largest exporter of soyoil and soymeal.

Further relaxing of health restrictions in China, including a lifting of travel curbs, has raised hopes of an economic upturn in the world’s biggest soybean importing country.

That added to positive export sentiment as brisk overseas sales for U.S. soybeans were confirmed in weekly export inspections data on Tuesday.

“Strong exports and a dry forecast in Argentina helped to support (soybean prices),” research firm Hightower said in a report.

However, there was also caution in financial markets about the short-term impact of China’s COVID policy shift, with a surge in infections straining hospitals and prompting some countries to consider new rules for Chinese visitors. GRA/

CBOT wheat Wv1 eased 0.10% to $7.73-3/4 a bushel and corn Cv1 inched down 0.04% at $6.74-1/2 a bushel.

Wheat rallied in the past week as extreme cold weather gripped the United States, threatening to hurt winter wheat crops already weakened by drought.

“We will probably have to wait several weeks to get a reliable estimate,” consultancy Agritel said of potential damage.

Wheat prices were also capped by Russian competition in export markets.

Egypt’s state grains buyer is believed to have booked 80,000 tonnes of Russian wheat on Tuesday, traders said.

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