February 9, 2007

 

Argentina wheat stage late recovery on export demand

 

 

Argentine spot wheat prices were down on the week at the Rosario Grain Exchange, but recovered slightly on Thursday (Feb 8) due to exporter demand, according to analysts.

 

"After a few sessions without changes in cereals, wheat went up late today ... as an exporter stepped in paying more for spot wheat," the Exchange said.

 

 

Wheat

 

Spot wheat closed at ARS350 (US$112.72) per tonne in Rosario Thursday, down from ARS360 a week earlier. Some 2,000 tonnes were traded.

 

December futures were priced at US$113, according to the Exchange.

 

Argentina will produce 14 million tonnes of wheat in 2006/07, according to the Agriculture Secretariat.

 

The USDA is expecting 14.2 million tonnes of wheat from the 2006/07 crop.

 

 

Soy

 

Spot soy traded at ARS605 per tonne at the Rosario Grain Exchange Thursday, up from ARS600 a week ago. Some 18,000 tonnes were traded.

 

"Gains (at the CBOT) caused local soy buyers to increase their offers," the Exchange said.

 

May soybeans were traded at US$195 per tonne Thursday unchanged from a week ago. Futures volume was estimated at 12,000 tonnes.

 

The Agriculture Secretariat forecasts that a record 43 million tonnes of soybeans will come from the 2006/07 crop.

 

The USDA estimates that Argentina will produce 42.5 million tonnes of soy from the 2006/07 crop.

 

 

Corn

 

Cash corn sold for ARS395 per tonne, up from ARS385 a week ago. Volume totalled 4,000 tonnes.

 

March corn closed at US$124 per tonne, up from US$123 a week earlier. Future trades totalled 13,000 tonnes.

 

Argentina will produce 21 million tonnes of corn this year, according to the Agriculture Secretariat.

 

The USDA estimates that Argentina will produce 19 million tonnes of corn during the 2006/07 crop cycle.