August 18, 2006

 

Argentina cash corn down; soy unchanged

 

 

Argentina cash corn prices fell while soy prices remained unchanged from a week ago.

 

Cash corn sold for ARS260/tonne Thursday (Aug 17) in Rosario, down from ARS268 a week ago. Around 8,000 tonnes were traded, down from 15,000 a week ago, according to ROAGRO.

 

Corn futures for delivery in Mar 2007 sold for US$83/tonne, down from US$87 last Thursday.

 

Corn prices eased in line with Chicago and expectations that favourable growing conditions in the US would lead to increased output in the northern hemisphere this season, Novitas brokerage analyst Diego De la Puente said.

 

There is also strong domestic demand from the feedlot industry, he added.

 

The USDA forecasts that Argentina will produce 17.5 million tonnes of corn in 2006/07, up sharply from the 14 million tonnes produced in 2005/06.

 

The Agriculture Secretariat estimates that 3.2-3.3 million hectares will be planted with corn during the 2006/07 crop cycle, up 3 percent from last year.

 

As of Aug 11, Argentina had sold 7.005 million tonnes of 2005/06 corn for export, compared with 9.5 million tonnes of 2004/05 corn at this time last year.

 

 

Soy

 

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

 

Some 5,000 tonnes of soybeans were traded Thursday in Rosario, compared with 4,000 tonnes a week earlier, according to ROAGRO.

 

Exporters offered US$169/tonne for soy futures with delivery in May 2007, down from US$171 the preceding week.

 

The USDA has estimated Argentina's 2005/06 soybean crop at a record 41.3 million tonnes, while the Agriculture Secretariat sees output at 40.5 million tonnes.

 

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

 

By Aug 8, Argentina had sold 5.897 million tonnes of 2005/06 soybeans and 1.515 million tonnes of 2006/07 beans for export.