September 14, 2007

  

Argentina spot wheat up on local demand; soy, corn futures fall on CBOT

 

 

Argentine spot wheat prices were up on the week at the Rosario Grain Exchange Thursday (September 13) amid strong demand from local millers, while new-crop wheat slid in line with the Chicago Board of Trade, according to analysts.

 

Spot wheat sold at ARS585 (US$186.75) per tonne Thursday, up from ARS545 a week ago.

 

January 2008 wheat closed at US$188 per tonne, down from US$191.5 a week ago.

 

While local millers drove up spot wheat prices, exporters stepped out of the market due to falling prices in Chicago, according to the Rosario Grain Exchange.

 

Exporters also fear that recent gains in wheat prices will lead the government to increase the export tax on the grain, according to the exchange.

 

While new export commitments are currently blocked, the government is expected to open the export registry for new crop wheat soon, according to the exchange.

 

In March the government closed the registry for new wheat exports in the face of soaring export declarations.

 

Rising international prices carried local soy values higher, the exchange said.

 

Spot soy closed at ARS740 per tonne Thursday, up from ARS710 a week ago. Volume was estimated at 30,000 tonnes.

 

May 2008 soy sold at US$230 per tonne, up from US$222 last week. Futures volume reached 15,000 tonnes.

 

Increased corn production in the US this season and the rapid advance in the US harvest weighed on local spot corn prices, according to the exchange.

 

Exporters paid ARS360 per tonne for spot corn, down from ARS365 a week ago.

 

April 2008 corn sold at US$118 per tonne, up from US$115 last Thursday.