June 23, 2006

 

Argentina's cash soy prices lower; corn unchanged

 

 

Cash soy prices in Argentina ended lower on the week Thursday (Jun 22) as farmers almost finished collecting the 2005/06 soybean harvests.

 

"There isn't much news and values haven't changed that much," said Jose Frogone, a trader and analyst with the Buenos Aires-based brokerage Cortina Beruatto.

 

Cash soybeans sold for ARS517/tonne (US$168), down from ARS520 a week ago, at the Rosario Cereals Exchange.

 

Some 20,000 tonnes of cash soybeans were sold Thursday, down from an estimated 40,000 tonnes a week earlier.

 

Exporters offered US$176/tonne for soy futures with delivery in Apr 2007, little changed from US$175 a week ago.

 

"There was very little action today," said Frogone. "The market is pretty stable."

 

Farmers had collected just over 99.6 percent of the 2005/06 soybean crop by Jun 16, 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 2005/06 soybean production at 40.75 million tonnes.

 

By Jun 20, Argentina had sold 4.789 million tonnes of 2005/06 soybeans.

 

 

Corn

 

Cash corn sold for ARS260/tonne Thursday in Rosario, unchanged from a week ago.

 

The Rosario Exchange said 20,000 tonnes of corn was sold Thursday, in line with the previous week.

 

Corn futures for delivery in Mar 2007 sold for US$84/tonne, unchanged on the week.

 

Farmers had harvested almost 91.3 percent of the 2005/06 corn crop by Jun 16, 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.

 

As of Jun 16, Argentina had sold 5.36 million tonnes of 2005/06 corn, compared with 7.665 million tonnes of 2004/05 corn.