August 21, 2009

Argentine soy prices were down on the week at the Rosario Grain Exchange on Thursday, following the steep losses in international soy markets on Monday (Aug 17).

 

While prices recovered partially later in the week, the rebound wasn't enough to make up for Monday's dip.

 

Spot soy were traded at ARS970 (US$251.95) a tonne in Rosario on Thursday (Aug 20), down from ARS1,000 (US$260) a week ago.

 

March 2010 soy futures traded at US$215 a tonne, down from US$226 a week ago.

 

Soy trade volume continues to be low as farmers hold out for higher prices, according to the exchange.

 

Spot corn was traded at ARS400 (US$104) a tonne Thursday. Spot corn wasn't traded last Thursday.

 

"Buyers withdrew from the market" Thursday, the exchange said.

 

Corn trade also continues to be muted as the market awaits an export deal.

 

Argentina is working on an agreement with exporters to open up corn and wheat exports while ensuring adequate domestic supply, Cabinet Chief Anibal Fernandez said earlier this month.

 

However, little progress appears to have been made so far.

 

Wheat and corn exports are tightly regulated to ensure local supply and shield consumers from rising food prices. The government sets aside a predetermined estimation of domestic demand and then only clears the surplus for export.

 

Exports of corn and wheat are likely to fall sharply next season due to a steep drop in area planted with those grains. 

 

Wheat futures weren't traded Thursday. Spot wheat hasn't been traded since mid-June.