February 10, 2006

 

Argentina's corn price down; soybeans end higher

 

 

Argentina's cash corn and wheat prices ended lower Thursday from a week ago while soybean prices were up, boosted by higher values at the CBOT.

 

Argentina's soybean prices follow trends at the CBOT, though corn is influenced more by local demand.

 

Soybeans traded for ARS550 (US$179) per tonne Thursday at the Rosario Cereals Exchange, were up from ARS535/tonne a week ago.

 

Around 30,000 tonnes of soybeans were sold Thursday in Rosario, compared with 7,000 tonnes a week earlier.

 

May soy futures sold for US$166 per tonne, up from US$165/tonne a week ago. Some 3,000 tonnes of soy futures were sold Thursday.

 

As of Saturday, farmers have planted 98.4 percent of the 2005/06 soybean crop, according to the Buenos Aires Cereals Exchange.

 

The US Department of Agriculture has forecast Argentina's 2005/06 soybean crop at a record 40.5 million tonnes.

 

Recent rain has been good for the crop's evolution and many analysts and weather experts have said it is on track to develop normally this season. Forecasts call for fresh rain through early next week.

 

As of Feb 8, Argentina had sold 10.06 million tonnes of 2004/05 soybeans for export, local Agriculture Secretariat data show. Sales of 2005/06 soybeans totalled 1.794 million tonnes by the same date.

 

 

Corn

 

Cash corn sold for ARS245/tonne Thursday in Rosario, down from ARS257/tonne a week ago.

 

Around 15,000 tonnes of corn were sold Thursday in Rosario, up from less than 4,000 tonnes a week ago.

 

At least one trader offered US$80/tonne for March 2005/06 futures, down a bit from US$81/tonne a week ago.

 

Farmers had planted 99.6 percent of the 2005/06 corn crop by Saturday, according to the Buenos Aires Exchange.

 

The USDA has forecast Argentina's 2005/06 corn output at 16.8 million tonnes. Analysts here say that forecast is too high. The Argentine Corn Association, or Maizar, says production will total 14 million tonnes in 2005/06 and the Agriculture Secretariat has put production at between 13 million and 14 million tonnes.

 

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 15.2 percent less corn in 2005/06 than a year ago. It sees planted area at 2.23 million hectares, down from 2.62 million the previous season.

 

As of Feb 3, Argentina had sold 13.88 million tonnes of 2004/05 corn for export, up from 10.99 million tonnes a year earlier, Secretariat data show.