Chicago soybeans: Oil rose again to above $16.5 per bushel, bouncing off from a two-week low and approaching their highest level since September 2012 amid ongoing supply disruptions from the Black Sea region and the world’s top exporter Argentina.
Argentina announced that it would immediately halt export registrations of soybean oil, soy meal, and other related products, arguing the government wants to raise tariffs to 33% from the current 31%. The move pauses sales and exports of the 2021/22 crop, which could tighten the oilseed supplies already squeezed by drought.
The soybean market has been rallying on the back of Russia’s invasion of Ukraine. Ukraine is a major global supplier of corn and sunflower oil, and disruption to production due to the current conflict with Russia puts additional pressure on other grains and vegetable oils.