June 13, 2008

 

Argentine grain exchange re-opens after two-week shutdown

  
  

The Rosario Grain Exchange resumed trading Thursday (June 12, 2008) after a 2-week shut down due to recent farm strikes.

 

Farm groups suspended their strike Monday, but many regional farm groups continued to throw up roadblocks this week.

 

Many also refused to sell their grains, choosing to sit on stocks. 

 

The truck owners' organization announced Tuesday they would launch a nationwide transport blockade to force farmers and the government to resume negotiations and solve the conflict.

 

Although trade was spotty at the exchange, most prices were rising due to gains at the CBOT, the Rosario Grain Exchange said.

 

Those contracts calling for rapid delivery fetched the highest prices, with sellers hoping that the transport situation normalizes this weekend and allow for delivery, the exchange said.

 

Farmers have sporadically blocked traffic in sporadic strikes since March, causing food shortages in the cities and cutting off grain exports. 

 

Soy
 

Soy traded over a broad range Thursday, with exporters paying ARS1,000 ($327.60) a tonne for guaranteed delivery by June 16, while spot soy sold for ARS870. Spot contracts usually allow a month before actual delivery must be made. August soy sold for ARS880 a tonne in Rosario Thursday.

 

 

Wheat 
  

Spot wheat with a minimum gluten count of 26 sold for ARS740 a tonne Thursday.

 

On Wednesday, the government announced it would free up another 1 million tonnes of 2007-08 wheat for export. Half of that will go to Brazil, with the remaining wheat going to Bolivia and other countries.

 

 

Corn 
  

Spot corn traded for ARS540 a tonne Thursday, while exporters with pressing needs paid ARS600 for delivery before June 16, according to the exchange.

 

(US$1=ARS3.0535)