April 24, 2006

 

Argentina's corn and soy prices up from previous week

 

 

Argentina's corn and soybean prices rose Thursday from the previous week despite a report from the Agriculture Secretariat that raised production estimates for the 2005/06 crops.

 

Cash soybeans sold for ARS502 (US$164) per tonne at the Rosario Cereals Exchange, up from ARS500 a week ago.

 

The exchange said 40,000 tonnes of cash soy were sold Thursday, down from 70,000 tonnes a week earlier.

 

Soy futures for May delivery sold for US$163/tonne, up from US$162/tonne a week ago.

 

The price of soy rose even though the Secretariat raised its estimate for the 2005/06 soybean crop to 40 million tonnes from 39.5 million tonnes, the Rosario exchange said Thursday in an online commentary on the market.

 

Farmers had collected 41.4 percent of the 2005/06 soybean crop by Apr 15, 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.

 

As of Apr 4, Argentina had sold 10.164 million tonnes of 2004/05 soybeans for export, Secretariat data show. Sales of 2005/06 soybeans totalled 2.502 million tonnes by the same date.

 

 

Corn

 

Cash corn sold for ARS261 per tonne Thursday in Rosario, up from ARS255/tonne a week ago.

 

This came despite news early in the session of greater 2005/06 corn production, as the Secretariat increased its forecast for output to 14 million tonnes from the 13.8 million tonnes expected in March, the Rosario exchange said.

 

Some 20,000 tonnes of cash corn were sold Thursday, up from 12,000 tonnes a week ago.

 

Corn futures for May delivery went for US$86/tonne, up from US$84/tonne a week earlier.

 

Farmers had harvested 35.3 percent of the 2005/06 corn crop by Apr 15, according to the Buenos Aires Exchange.

 

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

 

Last season good weather and solid prices led farmers to harvest a record 19.5 million tons of corn, according to the USDA. The Secretariat says output last season totalled a record 20.5 million tons.

 

The Buenos Aires exchange says farmers have planted 14.1 percent less corn than a year ago. It sees planted area at 2.26 million hectares, down from 2.63 million hectares the previous season.

 

As of Apr 14, Argentina had sold 14 million tonnes of 2004/05 corn for export, up from 11.16 million tonnes a year earlier, Secretariat data show, unchanged from a week earlier. By that same date, it had sold 3.38 million tonnes of 2005/06 (March-February) corn for export, down from 4.845 million tons a year earlier.