January 11, 2008

 

Argentine soy prices rise on demand and climate concerns
 

 

Argentine soy prices rose on the week at the Rosario Grain Exchange Thursday despite volatility on the Chicago Board of Trade.

 

May 2008 soy closed at US$290 a tonne, up from US$280 last week, with volume at 10,000 tonnes.

 

Spot soy sold for ARS925 (US$297.22) a  tonne in Rosario Thursday, up from ARS900 a week ago. Volume was 10,000 tonnes, including for soy for delivery at ARS935 up until Jan. 18.

 

The rise in prices "responds to the need of some buyers for grains and the fears of an impact of a negative climate on the harvest," according to the Rosario Exchange.

 

Showers Wednesday and Thursday in key farming areas improved the condition of crops but an immediate return in high temperatures could be harmful, it added. 

 

Wheat prices were up on the week on strong demand from buyers for supplies, the exchange said.

 

Spot wheat sold for ARS490 a tonne Thursday, up from ARS480 a week ago. Volume was 12,000 tonnes.

 

As of Nov. 29, exporters had declared more than 7.037 million  tonnes of 2007-08 wheat for export, according to the Agriculture Secretariat.

 

About 10.5 million tonnes of wheat are expected to be available for export from the new crop, according to the US Department of Agriculture.

 

Spot corn was traded at ARS435 a tonne, up from ARS400 a week ago. Volume was 5,000 tonnes.

 

March and April 2008 corn sold at US$145 a tonne, up from US$142 last Thursday.

 

Prices rose on greater demand from buyers, even though this was limited by government-imposed export restrictions, the exchange said.

 

It added that poor weather conditions are continuing to worry the market.