July 7, 2006

 

Argentina's soy and corn prices close higher on the week

 

 

Cash soy and corn prices in Argentina ended higher Thursday (Jul 6) amid high-volume trading.

 

"The market was pretty firm today," said Federico Mircoli, a trader at Granos del Parana.

 

Mircoli said abrupt gains Thursday at the Chicago Board of Trade, the world's reference market, pushed local values up and led to higher-than-usual sales Thursday.

 

Around 100,000 tonnes of soybeans were traded Thursday at the Rosario Cereals Exchange, an unusually "impressive" volume, the Exchange said. Volume was up sharply after prices rose more than US$3 a tonne from the previous day. About 40,000 tonnes were sold a week ago at the Exchange.

 

Cash soybeans traded for ARS520/tonne (US$168.5) in Rosario, little changed from a week ago.

 

Exporters offered US$174/tonne for soy futures with delivery in May 2007, unchanged on the week.

 

Farmers finished harvesting the 2005/06 soybean crop last month, 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 put 2005/06 soybean production at 40.75 million tonnes.

 

By Jul 4, Argentina had sold 4.92 million tonnes of 2005/06 soybeans and 685,000 tonnes of 2006/07 beans.

 

 

Corn

 

Cash corn sold for ARS270/tonne Thursday in Rosario, up 5 pesos from the previous day and up 10 from a week ago.

 

Volume was also up from last week.

 

The Exchange said 50,000 tonnes of corn was sold Thursday, up from 35,000 tonnes the previous week.

 

Corn futures for delivery in March 2007 sold for US$87/tonne, up from US$82 on the week.

 

"Corn could move higher," Mircoli said. "There is little corn here and much of what we've got will be consumed domestically. On top of that, there is a lot of global demand for corn. There is heavy demand for ethanol in the US and more demand from China, South Korea and Japan. When China demands more, the whole system begins to feel it."

 

Farmers had harvested almost 96.2 percent of the 2005/06 corn crop by Jun 23, 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 June 30, Argentina had sold 5.37 million tonnes of 2005/06 corn, compared with 7.784 million tonnes of 2004/05 corn.