Grain prices rise on Argentinean protest threat

 

 

Head of the Argentine Agrarian Federation, Eduardo Buzzi said Argentina is the world's third-largest exporter of the oilseed, crushed for oil for cooking and making biofuels and for meal used as animal feed. Farmers plan a six-day protest starting Friday, 3 October 2008.

 

Head of the Rural Society, Hugo Biolcati said farmers may halt beef and grain production.

 

Soy futures for November delivery rose as much as 1.7 percent to $10.63 cents on the Chicago Board of Trade. It was at $10.5775 in after-hours trading at 11:30 a.m. in Singapore.

 

Soy prices soared to a record in July as four months of protest by Argentinean farmers brought the country to a near halt. Grain was withheld from sale and roads around ports blockaded in protest at government plans to increase export taxes.

 

The commodity lost one-third of its value in the three months ended yesterday. Soy suffered its biggest quarterly decline since 1973 after the strikes ended. Commodity prices also fell on speculation slowing world growth would reduce demand.

 

Corn, which competes with soy and wheat for acreage, gained as much as 2.4 percent to US$4.99 a bushel in Chicago, the first gain in five days. It last traded at US$4.98.

 

Wheat in Chicago gained a second day, rising 2 cents, or 0.3 percent, to US$6.82 a bushel. It rose 1.8 percent yesterday.

 

National Australia Bank Ltd said in a report today that Australia, the world's sixth largest wheat exporter may produce 14 percent less of the grain this harvest that was previously forecasted after dry weather.

 

Output may total 20.8 million tonnes, down from the bank's June forecast of 24.3 million tonnes.