June 2, 2006

 

Argentina soy and corn prices little changed from week ago

 

 

Argentina soy and corn were little changed Thursday (Jun 1) from a week ago amid rumours that the government plans to increase taxes on, or limit the export of, sunseed oil.

 

"We're all waiting to see if the government does anything with sunseed oil exports," said Federico Mircoli, a trader at Granos del Parana. "There's been a rumour circulating all day about this. I don't think anything is going to happen, but you never know with this government. They've done it before with beef and wheat."

 

The government banned beef exports in March, though it partially lifted the ban this week.

 

Analysts say the government eventually may also seek to limit or place higher taxes on corn exports.

 

 

Soybean

 

Cash soybeans sold for 520 Argentine pesos a tonne (US$168.8/tonne), unchanged from a week ago, at the Rosario Cereals Exchange.

 

"Soybean prices basically followed the price trends in Chicago," said Mircoli.

 

Around 60,000 tonnes of cash soybeans were sold Thursday, up from 50,000 tonnes a week ago.

 

Buyers offered soy futures for US$175/tonne for delivery in May 2007, unchanged from a week earlier.

 

Farmers had collected about 95 percent of the 2005/06 soybean crop by May 26, 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, while the Agriculture Secretariat sees output at 40 million tonnes. The Buenos Aires Exchange sees it at 40.4 million tonnes.

 

By May 30 Argentina had sold 4.594 million tonnes of 2005/06 soybeans.

 

 

Corn

 

Cash corn sold for as much as ARS267 a tonne Thursday in Rosario, down from ARS273 a week ago.

 

The Rosario Exchange said 10,000 tonnes of cash corn were sold Friday, down from 40,000 tonnes a week ago. Another 13,000 tonnes of corn futures were traded, up from 10,000 last Thursday.

 

Corn futures for delivery in March 2007 sold for US$87/tonne, compared with US$88 a week earlier.

 

Farmers had harvested almost 81 percent of the 2005/06 corn crop by May 26, 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 14 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 the planted area at 2.23 million hectares, down from 2.62 million hectares the previous season.

 

As of May 26, Argentina had sold 4.82 million tonnes of 2005/06 corn, compared with 7.02 million tonnes of 2006/07 corn.