May 21, 2008

US soy prices slump as Argentine strike expected to settle

US soy prices declined on Monday as Argentina's government moves to resolve the ongoing farmers' strike, which has blocked grain shipments.

US soy for July delivery dropped 45 cents to settle at US$13.33 a bushel on the Chicago Board of Trade, after earlier falling as low as US$13.22 a bushel.

Jason Ward, analyst with Northstar Commodity in Minneapolis, said that the strike has definitely had a positive impact on what the US has been exporting.

Argentine farmers have been on strike the past two months to overturn a 44 percent export tax on soy and other products.

Members of four farming groups who have organized the strike have agreed to meet with the government Monday and discuss a possible resolution, local media reported.

Ward said that the expected resolve on the strike got some US traders nervous.

Meanwhile, US wheat for July delivery shot up 15.5 cents to settle at US$7.91 a bushel on the CBOT, while July corn futures fell 4.25 cents to US$5.8675 a bushel on the CBOT.