April 19, 2007

US corn to gain from Argentina's delays
 

Argentina's delays in loading the grain in vessels will have exporters shift their sights to US corn, boosting grain exports in the United States, traders said Wednesday.

As a result, prices in the US CIF barge that supplies export elevators shot up as against those from South America.

A corn trader said the shift, however, will move slowly because Argentine corn is cheaper but the purchase bulk would necessary come from the US.

Heavy rains in Argentina have slowed both the corn harvest and delivery to the ports. Argentine farmers are now focusing on harvesting their soybeans, which deteriorate more quickly than corn once they have matured.

Vessels were waiting to load about 1.2 million tonnes of corn in Argentina, traders said.

Export demand typically shifts in the spring to Argentina, the world's second corn exporter after the United States. Argentina is expected to have a record crop this year of about 22.5 million tonnes this year and has harvested about 40 percent of the grain.

Exporters were paying as much as 31 cents a bushel premium to the Chicago Board of Trade (CBOT) July contract for barges of corn shipped in June, up from 28 cents premium on Tuesday.

For corn shipped in July, exporters were paying as much as 36 cents premium to CBOT July, up from traded prices of 33 cents premium on Tuesday.