(Jan 18): Soybeans climbed to their highest since June as a devastating drought parched fields in Argentina, the world’s biggest exporter of soybean meal for livestock feed and soybean oil for cooking.

Soy futures traded in Chicago gained 0.4% to US$15.465, a fifth straight day of gains.

While a La Nina weather pattern is ebbing to usher in more neutral conditions, it’s happening more slowly than expected. Showers that were forecast from the end of January are likely to arrive weeks later — too late to relieve Argentine soy and corn crops that are thirstiest during the heart of the southern- hemisphere summer in February. The soy harvest occurs in the second quarter.

“As rains return in the coming months they’ll provide relief for farmland for next season, but they won’t improve the current crops,” the Buenos Aires Grain Exchange said. The Rosario bourse sees more normal rains closer to April.
 
A weak dollar and higher-than-expected US export inspections are supporting both corn and soybean prices in Chicago, according to Agritel. “In China, consumption seems to be picking up and the pig population is increasing significantly, which could lead to an increase in feed demand,” the consultant said.

In other grains, corn rose for a sixth straight day, the longest gaining streak since August. Wheat touched the strongest in two weeks Tuesday after President Vladimir Putin said top shipper Russia must control grain exports to ensure reserves.