April 25, 2008

 

Uncertainty pulls Argentine grain prices lower

 

 

Argentine grain prices were mostly lower on the week at the Rosario Grain Exchange Thursday (April 24, 2008) with volatility at the CBOT and weak local demand due to uncertainty over a looming farm strike weighing on prices.

 

A three-week farm strike was suspended April 2 for 30 days to facilitate negotiations with the government.

 

Farmers say they will resume their strike at the beginning of May if the government does not give ground over a controversial export tax on grains.

 

Talks appeared to break down on Tuesday as parties failed to find common ground over regulation of the wheat sector.

 

 

Soy

 

Spot soy sold for ARS890 (US$279.43) per tonne at the Rosario Exchange Thursday, up from ARS875 a week ago.

 

May 2009 soy traded at US$286 at the Buenos Aires Cereals Exchange, unchanged from last Thursday.

 

Soy exports have resumed after disruptions due to last month's strike.

 

Bunge Ltd. (BG) said Thursday that its soy exports from Argentina had returned to normal following the strike.

 

Alberto Weisser, Bunge's chairman and chief executive, said on a call with analysts that the "flow is normal at the moment."

 

Agribusiness groups were forced to cancel shipments from Argentina during the strike, which buoyed international soy prices.

 

 

Corn 
 

Spot corn was traded at ARS485 per tonne at the Rosario Exchange, down from ARS510 last week.

 

April 2009 corn traded at $157 a ton at the Buenos Aires Cereals Exchange, down from US$161 last Thursday ( April 24, 2008).

 

Shipments continued to be snarled in red tape as customs agents demand additional documentation before clearing shipments.

 

 

Wheat

 

Spot wheat with a minimum gluten count of 30 sold for ARS750 per tonne, unchanged from a week ago.

 

December/January wheat was priced at US$212.50 per tonne at the Buenos Aires Cereals Exchange on Thursday (April 24, 2008), down from US$217 a week ago.

 

Wheat exports remain closed while the government negotiates with farmers. Exporters are out of the market until shipments are allowed to resume, the Rosario Exchange said.