January 20, 2006

 

Argentina's corn and soy prices ended higher

 

 

Argentina's cash corn and soybean prices ended higher Thursday from a week ago in light trading, traders said.

 

Soybeans sold for 520 pesos (US$171) per tonne Thursday at the Rosario Cereals Exchange, up from 515 pesos a week ago.

 

The Rosario Exchange is Argentina's top cash soybean market.

 

Some 8,000 tonnes of soybeans were sold Thursday in Rosario, compared with 5,000 tonnes a week earlier. All of Thursday's soybean sales were to local crushers, according to the Exchange's Institute of Economic Studies.

 

May soy futures sold for US$161.6/tonne, up from US$160/tonne a week ago.

 

So far, farmers have planted 97 percent of the 2005-06 soybean crop, according to the Agriculture Secretariat. The crop continues to be on track to develop normally after receiving fresh rain last week.

 

The USDA has forecast Argentina's 2005-06 soybean crop at a record 40.5 million tonness.

 

As of Tuesday, Argentina had sold 9.918 million tonnes of 2004/05 soybeans for export, local Agriculture Secretariat data show. Sales of 2005/06 soybeans totalled 1.593 million tonnes by the same date.

 

Corn

 

Cash corn sold for ARS237/tonnes Thursday in Rosario, up a bit from ARS235 a week ago.

 

About 6,000 tonness of corn were sold Thursday in Rosario, up from 5,000 tonnes a week ago.

 

At least one trader offered US$77/tonne for March 2005/06 futures, down from US$78/tonne a week ago.

 

Farmers have sowed 95 percent of the 2005-06 corn crop by Saturday, according to the Secretariat.

 

The USDA has forecast Argentina's 2005/06 corn output at 16.8 million tonnes. However, local analysts say that figure is too high. The Argentine Corn Association, or Maizar, says production will total 14 million tonnes in 2005/06.

 

Last season, good weather and solid prices led farmers to harvest a record 19.5 million tonnes of corn, according to the USDA. The Agriculture Secretariat says output last season totalled a record 20 million tonnes.

 

The Buenos Aires Exchange expects farmers to plant less corn in 2005/06 than a year ago. It sees planted area at 2.23 million hectares, down from 2.62 million hectares the previous season.

 

As of Friday, Argentina had sold 13.705 million tonnes of 2004/05 corn for export, up from 10.495 million tonnes a year earlier, Secretariat data show.