January 22, 2008

Mexico cash grains: White corn, soy trade in slow market

There was little fresh physical trading this week in the Mexican cash grains markets as US prices for all imported grains remained at or close to record highs, traders and importers said Friday.

Some white corn from the now completed Bajio harvest in central Mexico traded and some orders were placed for soy and soymeal, for which prices came down from record highs seen in recent weeks.

One local trader said that there was a little bit of soy trading, and there were some interest in soymeal as the prices fell in the US market, but even with these slightly lower levels, prices are still very expensive.

He said traders and importers alike were "extremely careful" about placing orders given the current speculation in the market, and volumes for orders were smaller than usual and only sufficient to cover nearby demand.

Some white corn from the Bajio crop also was reported to trade, as prices for the locally produced crop have remained stable for several months now, Mexican traders in the central and northern grains regions said.

Corn and wheat futures closed mixed Friday at the Chicago Board of Trade, with active March corn settling 3 3/4 cents lower at US$4.98 1/4 cents a bushel, but March wheat closing up 30 cents at US$11.94 3/4 a bushel.

Soy products, meanwhile, ended lower Friday, with active January soy down 7 cents at US$12.64 a bushel and January soymeal futures settling US$5.00 lower at US$339.30 a short tonne.