GRAINS-Soybeans rally as earlier slide leads to new buying
* Soybeans rebound on tight supply
* Corn follows soybeans, supported by exports (Updates closing prices)
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CHICAGO, Dec 29 (Reuters) - Chicago soybean futures soared to new highs on Tuesday as traders shrugged off short-term pressure from promising labor negotiations in Argentina.
Corn followed soybeans higher on export optimism, while wheat rose after two days of losses.
Despite starting the day trending lower, the most-active soybean contract on the Chicago Board of Trade (CBOT) gained 38-3/4 cents to settle at $12.96-1/4 per bushel, after reaching $12.99-1/2, the highest since June 23, 2014.
"Every dip in the price of soybeans right now seems like an opportunity to buy, because we have such tight carryouts," said Dan Hussey, senior market strategist at Zaner Group.
In Argentina, more than $1.4 billion in agriculture exports have been blocked from loading due to a prolonged labor strike by oilseed workers and grain inspectors, though Tuesday's negotiations show signs of progress.
Despite possible resolution, the global soybean supply remains tight.
"You don't have any real evidence that the demand pace has slowed down," said Dale Durcholz, principal at Grain Cycles.
Corn strengthened to new 6-1/2 year highs, supported by strong exports and soybean strength, though Durcholz said corn exports need to remain strong through the spring to meet U.S. Department of Agriculture forecasts.
"It's not as much the sales, as it is the shipments," he said. "You're betting those spring and summer shipments will be robust."
Corn futures have more upside in early 2021, according to Hussey, as export prospects remain strong and ethanol demand has the potential to increase in the spring.
"I think corn is the undervalued grain going into 2021," he said, noting higher soybean prices may pull farmers away from corn planting in the spring.
Corn rose 9-1/2 cents to $4.66 per bushel, after reaching $4.67-1/4 per bushel, the highest for a most-active contract since June 2, 2014, while wheat added 4-1/4 cents at $6.18-1/2 per bushel. (Reporting by Christopher Walljasper; Additional reporting by Naveen Thukral; Editing by Richard Chang)
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