June 16, 2006

 

Argentina's soy and corn prices little changed in light trade

 

 

Argentina's cash corn and soy prices were little changed Thursday (Jun 15) from a week ago amid sustained demand, traders said.

 

Cash soybeans sold for ARS520/tonne (US$168.80/tonne), unchanged from the past two weeks, at the Rosario Cereals Exchange.

 

Around 30,000 tonnes of cash soybeans were sold Thursday, down from 40,000 tonnes a week earlier.

 

Exporters offered US$177/tonne for soy futures with delivery in May 2007, up from US$175 a week ago.

 

"We have a huge soybean crushing cluster here and crushers need to be fed," said Hugo Pels, a trader with Granar SA in Rosario. "Beans are very firm compared with what's happening at the (Chicago) Board of Trade."

 

The Institute of Economic Studies at the Rosario Exchange agreed, noting that demand from crushers here has kept local soybean prices firm despite the vicissitudes of trading in Chicago.

 

"Domestic soybean prices are relatively firm compared with US soy amid a tight supply in the local market and an accelerated demand from exporters compared with previous years," the institute said in a commentary.

 

So far, Argentina has sold about 45 percent, or 16.68 million tonnes, of its exportable soybean supply this season, the Exchange said. That's up from an average of 42 percent by this time during the past three years.

 

"The advanced pace is being led by sales of soymeal and/or soybean pellets and soyoil," the institute said.

 

Farmers had collected just over 99 percent of the 2005/06 soybean crop by Jun 9, according to the Buenos Aires Cereals Exchange.

 

The US Department of Agriculture has forecast Argentina's 2005/06 soybean crop at a record 41.3 million tonnes while the Agriculture Secretariat sees output at 40 million tonnes.

 

The Buenos Aires Exchange has forecast 2006/07 soybean production to 40.75 million tonnes.

 

By Jun 13, Argentina had sold 4.773 million tonnes of 2005/06 soybeans.

 

 

Corn

 

Cash corn sold for between ARS255 and ARS260/tonne Thursday in Rosario, unchanged from a week ago. Most of the corn sold Thursday went for ARS260/tonne, the institute said.

 

"There is a lot of demand for corn from local poultry producers," Pels said.

 

The Rosario Exchange said between 15,000 and 20,000 tonnes of corn were sold Thursday.

 

Corn futures for delivery in Mar 2007 sold for US$84/tonne, down from US$86 a week earlier.

 

Farmers had harvested almost 89 percent of the 2005/06 corn crop by Jun 9, 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 planted area at 2.26 million hectares, down from 2.63 million hectares the previous season.

 

As of Jun 9, Argentina had sold 5.320 million tonnes of 2005/06 corn, compared with 7.21 million tonnes of 2006/07 corn.