August 4, 2006

 

Argentina cash soy and corn prices up

 

 

Argentina's cash soy and corn prices closed higher from the previous week on solid domestic demand from processors, traders said.

 

Cash soybeans sold for ARS520/tonne, up from ARS515/tonne a week ago.

 

Some 10,000 tonnes of soybeans were traded Thursday (Aug 3) in Rosario, compared to the 2,000 tonnes sold a week earlier.

 

There is strong demand from the local crushing industry based on greatly expanded capacity, Pels said. "There's more crushing capacity than available soy."

 

Exporters offered US$172/tonne for soy futures with delivery in May 2007, down from US$173 on the week.

 

The USDA has forecast Argentina's 2006/07 soybean crop at a record 41.3 million tonnes while the Agriculture Secretariat sees output at 40.2 million tonnes.

 

The Buenos Aires Exchange put 2005/06 soybean production at 40.75 million tonnes.

 

By Jul 31, Argentina had sold 5.599 million tonnes of 2005/06 soybeans and 1.485 million tonnes of 2006/07 beans.

 

 

Corn

 

Cash corn sold for ARS270/tonne Thursday in Rosario, up from ARS265 a week ago. Trade volume reached 20,000 tonnes.

 

Corn futures for delivery in Mar 2007 sold for US$87/tonne, up from US$86 on the week.

 

The USDA has forecast Argentina's new corn harvest at 14.5 million tonnes.

 

The Secretariat sees it at 14 million tonnes.

 

As of Jul 28, Argentina had sold 6.54 million tonnes of 2005/06 corn, compared with 9.205 million tonnes of 2004/05 corn.