May 5, 2006

 

Argentina's soy prices up; corn down

 

 

Argentina's oilseed prices were mixed Thursday (May 4) from a week ago even as lower futures prices at the Chicago Board of Trade pushed local values down the previous day.

 

Cash soybeans sold for ARS520 (US$171) per tonne at the Rosario Cereals Exchange, up from ARS508/tonne a week ago.

 

Buyers offered May soy futures for US$170/tonne.

 

"The market is firm but calm," said Federico Mircoli, a trader with Granos del Parana. "Values were down today because the funds were selling in Chicago, but I'd say that for right now, these are good prices for our soybeans, especially if you consider that our supply is coming online and you consider the competition we've got from US soybeans."

 

Mircoli said current prices will induce more farmers to sell, which could push prices down in the weeks ahead.

 

Farmers had collected 67.7 percent of the 2005/06 soybean crop by Apr 30, according to the Buenos Aires Cereals Exchange.

 

The USDA  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. The Buenos Aires Exchange sees it at 40.4 million tonnes.

 

By Apr 28, Argentina had sold 3.864 million tonnes of 2005/06 soybeans.

 

 

Corn

 

Cash corn sold for ARS250 per tonne Thursday in Rosario, down from ARS257 a week ago.

 

Corn futures for delivery in March and April 2007 sold for US$81/tonne.

 

Farmers had harvested 48.1 percent of the 2005/06 corn crop by Apr 30, according to the Buenos Aires Exchange.

 

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

 

The Secretariat sees it at 13.8 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 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 hectares the previous season.

 

As of April 28, Argentina had sold 3.585 million tonnes of 2005/06 corn, compared with 5.755 million tonnes of 2006/07 corn.