Argentina port strike possibly nearing an end


Argentina port strike possibly nearing an end

An analyst says a port strike in Argentina that’s been supportive to the market could be nearing an end.

Jamey Kohake with Paragon Investments tells Brownfield a resolution is likely coming as Argentine port workers and export companies plan to meet this week in hopes of ending the strike that began December 9th.

“We have seen a slowdown of the few beans that are left down there. Reflecting our markets, what we’ve seen is a lot of bull spreading. Meaning buying the nearby (and) selling the new crop, still assuming we have a few soybeans left on the world market. And that is driving prices higher here.”

He says the port strike has somewhat faded into the background already as the market focuses more on South American weather and the upcoming supply and demand report.

“More trading the dryness there in Argentina and some southern pockets of Brazil that are dry. Then of course, the trade expects a very bullish January 12th crop report.”

Kohake expects the upcoming USDA supply and demand estimates to show a huge drop off in the carryout and says the market is pricing in a lot of bullishness coming into next year.