September 25, 2009

Argentine soy prices eased on the week at the Rosario Grain Exchange Thursday (September 24) due to slack demand from exporters.

 

"Demand [for soy] was weak, with buyers keeping in mind that there isn't much merchandise to export or to process for export, while sellers that still have oilseeds are holding out for higher prices," the exchange said.

 

With Argentine soy in tight supply this year due to drought damage last season, exporters are cutting back on raw soy shipments and focussing on turning the beans into meal and oil.

 

Soy exports during the first seven months of the year totalled 3,422,356 tonnes, down from 7,157,998 tonnes a year earlier, according to the agricultural health and sanitation service, Senasa.

 

Meanwhile soymeal exports during the first seven months of the year surged to 8,356,420 tonnes, up from 6,825,840 tonnes a year earlier. Soyoil exports during the first seven months of the year rose to 1,960,565 tonnes from 1,680,139 tonnes a year earlier.

 

According to the Buenos Aires Cereals Exchange, soy output from the 2008-09 season plunged to 32 million tonnes from 46 million tonnes a year earlier due to a severe drought.

 

Spot soy were traded at ARS950 (US$247.56) and ARS960 a tonne in Rosario Thursday, down from ARS970 a week ago.

 

May 2010 soy futures traded at US$206 to US$207 a tonne, down from US$208 two weeks ago.

 

Neither spot nor future corn contracts were traded Thursday amid rumours of a meeting between the government and grain exporters to hammer out the details of a recent agreement to regulate new crop shipments, the exchange said.

 

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

 

"The floor is still empty of buyers interested in the cereal," the exchange said.