March 17, 2006

 

Argentina's soybeans and corn prices down

 

 

Argentina's cash soybean and corn ended lower Thursday from the previous week as lower prices at the Chicago Board of Trade met with pressure from a record 2005/06 soybean harvest to keep soybean prices down.

 

Cash soybeans went for ARS505 (US$164.3) per tonne at the Rosario Cereals Exchange, down from ARS515/tonne a week ago.

 

A year ago at this time cash soybeans sold for ARS515/tonne.

 

The Exchange said 10,000 tonnes of cash soy were sold Thursday, down from 25,000 a week earlier.

 

May soy futures sold for US$163/tonne, down from US$164 a week ago. A year ago similar futures went for US$178.

 

The outlook for soybeans is dim because farmers are getting ready to harvest the largest soybean crop in Argentine history, putting press on the price of cash beans already on the market.

 

However, fresh rain in key productions areas this week forced many farmers to wait.

 

"Farmers are anxious now," Pels said. "They want to start the harvest soon. But the rain is delaying things. Farmers want to get out there and produce so they can deliver their beans and make some money."

 

Meanwhile, that rain is also likely to improve the crop's condition, ensuring a solid harvest.

 

The US Department of Agriculture has forecast Argentina's 2005/06 soybean crop at a record 40.5 million tonnes while the Agriculture Secretariat sees output at 39.5 million tonnes.

 

As of March 14, Argentina had sold 10.099 million tonnes of 2004/05 soybeans for export, Secretariat data show. Sales of 2005/06 soybeans totalled 1.849 million tonnes by the same date, unchanged from the previous week.

 

 

Corn

 

Cash corn sold for ARS235 per tonne Thursday in Rosario, down from ARS240/tonne a week ago.

 

About 3,000 tonnes of cash corn were sold Thursday.

 

Last year at this time corn went for ARS190/tonne.

 

Corn futures for April delivery went for US$78/tonne, down from US$79/tonne a week earlier.

 

Farmers had harvested 11.1 percent of the 2005/06 corn crop by Saturday, according to the Buenos Aires Cereals Exchange.

 

The USDA has forecast Argentina's new corn harvest at 15.5 million tonnes.

 

The Secretariat sees it at 13.8 million.

 

Last season good weather and solid prices led farmers to harvest a record 19.5 million tonnes of corn, according to the USDA. The Secretariat says output last season totalled a record 20 million tonnes.

 

The Buenos Aires Exchange says farmers have planted 15.2 percent less corn than a year ago. It sees planted area at 2.23 million hectares, down from 2.62 million the previous season.

 

As of March 10, Argentina had sold 13.995 million tonnes of 2004/05 corn for export, up from 11.16 million a year earlier, Secretariat data show, unchanged from a week ago.