May 1, 2006

 

Argentina's soybean prices up, corn down

 

 

Soybean prices in Argentina received a boost from greater domestic and foreign demand.

 

Cash soybeans sold for ARS508 (US$167) per tonne at the Rosario Cereals Exchange, up from ARS502/tonne a week ago.

 

The exchange said 60,000 tonnes of cash soy were sold Thursday, down from 40,000 tonnes a week earlier.

 

May soy futures sold for US$166/tonne, up from US$163/tonne a week ago.

 

The price of soy rose despite volatility in international soybean markets as local processors increased orders to meet production commitments, the exchange said in an online commentary on the market.

 

Farmers had collected 50 percent of the 2005/06 soybean crop by Apr 22, 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 19, Argentina had sold 10.165 million tonnes of 2004/05 soybeans for export, data compiled by Argentina's Agriculture show. Sales of 2005/06 soybeans totalled 3.699 million tonnes by the same date.

 

 

Corn

 

Cash corn sold for ARS260 per tonne Thursday in Rosario, down from ARS261/tonne a week ago.

 

Some 20,000 tonnes of cash corn were sold Thursday, in line with the previous week.

 

Corn futures for May delivery went for US$81/tonne, down from US$86/tonne a week earlier.

 

Farmers had harvested 37.9 percent of the 2005/06 corn crop by Apr 22, 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 tonnes of corn, according to the USDA. The Secretariat says output last season totalled a record 20.5 million tonnes.

 

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 the previous season.

 

As of Apr 19, Argentina had sold 14 million tonnes of 2004/05 corn for export, up from 11.16 million a year earlier, Secretariat data show, unchanged from a week earlier. By Apr 21, it had sold 3.365 million tonnes of 2005/06 (March-February) corn for export, down from 5.135 million tonnes a year earlier.