Soybeans Rise as Cargo Delays in Argentina May Boost U.S. Sales

March 30 (Bloomberg) -- Soybeans rose for the third straight session as a strike by port workers in Argentina, the world’s third-largest producer, threatened to disrupt exports of newly harvested crops.

Processing plants at two ports on the Parana River remained shut yesterday as striking workers blocked access to the facilities, La Nacion said. Argentina is the biggest exporter of animal feed and cooking oil made from soybeans. Soybean-meal futures in Chicago rose, heading for the first monthly gain since November.

“Soybeans and soybean meal are rising because of the uncertainty about settling the labor unrest in Argentina,” said Mike Zuzolo, the president of Global Commodity Analytics & Consulting in Lafayette, Indiana. “People are concerned about Argentina meeting export commitments.”

Soybean futures for May delivery rose 6.5 cents, or 0.7 percent, to $9.74 a bushel on the Chicago Board of Trade. The price gained 2.7 percent in the prior two days and is down 7.1 percent this year.

Soybean-meal futures for May delivery rose $6.20, or 2.2 percent, to $283.10 for 2,000 pounds on the CBOT. The most- active futures are up 4.9 percent this month. On March 15, the commodity touched the lowest level since December 2008 on forecasts that production in Argentina and Brazil will surge.

China Soyoil Outlook

Soybean oil fell the most in more than two weeks on speculation that China, the world’s biggest vegetable-oil buyer, may toughen standards on imported vegetable oil to absorb a domestic supply glut.

The China Chamber of Commerce of Import and Export of Foodstuffs, Native Produce & Animal By-Products, a trade body affiliated with the Ministry of Commerce, will tomorrow brief a group of importers on proposed stricter inspection standards for imported soy oil, according to four executives, who declined to be identified before the official announcement.

China’s soybean-oil imports jumped 65 percent in the first two months of this year. Reduced imports of soy oil, which China mainly buys from Argentina, may reduce demand for higher-cost supplies from the U.S., said Charlie Sernatinger, a vice president at Fortis Clearing Americas LLC in Chicago.

“Potential Chinese restrictions would be negative for U.S. soybean-oil exports,” Sernatinger said.

Soybean-oil futures for May delivery fell 0.6 cent, or 1.5 percent, to 38.67 cents a pound on the CBOT, the largest drop for the most-active contract since March 15. The price has fallen 2.6 percent this month.

The soybean crop in the U.S. was valued at $31.8 billion last year, second only to corn, government figures show. The U.S. is the leading exporter of the commodities.