March 7, 2008

 

Argentine grains rise on CBOT, first wheat future traded

 

 

Argentine grains were generally higher on the week at the Rosario Grain Exchange Thursday ( March 6), in line with the Chicago Board of Trade, according to analysts.

 

The week also saw the first trade of wheat futures from the 2008-09 crop.

 

Wheat

 

Spot wheat has not been traded in Rosario since Feb. 11, when it closed at ARS570(US$180.66) per tonne.

 

However, the first 2008-09 future contract was traded Wednesday, with an exporter paying US$200 per tonne for December wheat.

 

The spot wheat market is paralyzed due to a closure of exports.

 

"The exporters are out of the market, as are most of the millers, with abundant stocks, except a few purchases of very-high quality goods," said Roagro analyst Carlos Boglioli in a market commentary.

 

Wheat farmers are angrily protesting the continued blockage of exports and plan to rally in front of a number of grain export terminals next week.

 

The government extended the closure of the wheat export registry last week, preventing any shipments before April 8. Previously, the government had said it would allow wheat exports starting March 17.

 

Exporters must register export commitments with the government before being allowed to ship grains.

 

At the end of January, the Agriculture Secretariat announced that an additional 2 million tonnes - or 400,000 tonnes per month over the next five months - would be made available for export, but has repeatedly put off actually accepting export commitments.

 

Corn prices up slightly

 

Spot corn was traded at ARS502 a tonne, up from ARS500 a week ago.

 

March and April 2008 corn sold at US$162 a tonne Thursday ( March 6), up from US$156 a week ago.

 

Soy prices down

 

Spot soy sold for ARS1100 a tonne Thursday ( March 6), up from ARS1090 a week ago.

 

Soy futures showed the only weakness on the week. May 2008 soy closed at US$330 a tonne, down from US$340 last Thursday.