February 16, 2007

 

Argentina's soy prices up on stronger CBOT

 

 

Argentine cash soy prices were up on the week at the Rosario Grain Exchange on Thursday (Feb 15), in line with similar gains at the Chicago Board of Trade, while wheat prices were steady as exporters stayed out of the market, according to analysts.

 

 

Soy

 

Spot soy traded at ARS620 (US$200) per tonne at the Rosario Grain Exchange Thursday, up from ARS605 a week ago. Some 20,000 tonnes were traded.

 

Increased prices in Chicago were reflected in the offers, the Exchange said.

 

May soybeans were traded at US$197 per tonne Thursday, up from US$195 a week ago. Futures volume was estimated at 10,000 tonnes.

 

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

 

The US Department of Agriculture estimates that Argentina will produce 44 million tonnes of soy from the 2006/07 crop.

 

 

Wheat

 

Spot wheat closed at ARS3350 per tonne in Rosario on Thursday, unchanged from a week earlier. Some 2,000 tonnes were traded.

 

Demand from exporters is low due to the lack of new wheat export purchases, the modification to the requirements for registering new sales which is limiting operations, and because exporters have already bought a large amount of wheat to cover their commitments, according to the Exchange.

 

January 2008 futures were priced at US$113 per tonne.

 

Argentina will produce 14 million metric 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.

 

 

Corn

 

Cash corn sold for ARS390 per tonne, down from ARS395 a week ago. Volume totalled 12,000 tonnes.

 

Offers were lower on the rapidly approaching start to the harvest season, the Exchange said.

 

March corn closed at US$127 per tonne, up from US$124 a week earlier. Future trades totalled 4,000 tonnes.

 

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

 

The USDA estimates that Argentina will produce 21 million tonnes of corn during the 2006/07 crop cycle.