May 7, 2007

 

Argentina soy prices up on week following CBOT; harvest limits gains

 

 

Argentine soybeans closed higher on the week Friday (May 4) following similar moves at the Chicago Board of Trade, but high spot supplies limited the gains, according to analysts.

 

Spot soy closed at ARS590 (US$191.56) per tonne at the Rosario Grain Exchange Friday, up from ARS585 a week ago. Spot volume was estimated at 15,000 tonnes. May 2008 soy closed at US$200 per tonne, up from US$198 last week. Some 5,000 tonnes of soy futures were traded.

 

Gains were limited by high spot supply as the 2006/07 harvest is in full swing, and a large number of trucks are arriving at the processing plant, according to the exchange.

 

As of May 4, farmers have harvested 68.6 percent of the soy crop, down 9.1 percentage points from the same date a year ago, according to the Buenos Aires Cereals Exchange.

 

Yields to date have averaged 3.14 tonnes per hectare, 16.2 percent higher than a year ago.

 

 

Corn

 

Spot corn traded at ARS365 per tonne in Rosario Friday, down from ARS360 a week ago. Volume was estimated at 9,000 tonnes.

 

April 2008 corn closed at US$119 per tonne, up from US$114 last week, with 7,000 tonnes of futures traded.

 

The government announced last Monday the reopening of the corn export registry for 3 million tonnes. The registry had been closed since November due to soaring export commitments.

 

However, the government has stalled the actual acceptance of new export declarations.

 

"Up to now, there has been no sign of a resolution in the Official Bulletin, even though (Agriculture Secretary Javier) Urquiza was supposedly going to sign the corresponding resolution," Roagro analyst Carlos Boglioli said.

 

At the time of the closure, corn exporters had declared new-crop export commitments of 10.06 million tonnes. Argentina is expected to produce 22 million   tonnes of corn from the 2006/07 crop, according to the US Department of Agriculture.

 

With domestic consumption estimated at 7 million tonnes of corn a year, mainly for use as animal feed, some 5 million tonnes may still be available for export from the 2006/07 crop, according to analysts.

 

 

Wheat

 

January 2008 wheat slipped US$3 from last week to close at US$132 per tonne at the Rosario Grain Exchange Friday. Some 2,000 tonnes of wheat futures were traded. Spot wheat closed at ARS370 (US$120.13) per tonne, unchanged from last Thursday. Volume was estimated at 1,500 tonnes.