October 10, 2008

 

Argentina grain markets stalled as sellers hold out after strike

Argentine grains posted mixed results on the week at the Rosario Grain Exchange Thursday (October 9) with very low trade as the market reopened after being shut since Friday (October 10) due to a farm strike.

 

"Purchase offers shifted from last Thursday (the last day of trade), but were not high enough to attract sellers," the exchange said.

 

Offers for soy rose, wheat fell and corn remained the same, but "there were no trades as sellers are waiting for better prices," the exchange noted.

 

Argentina's farmers ended their six-day strike, as planned, on Wednesday and are waiting to see the details of a government farm stimulus plan before deciding their next move, a representative of one of the leading farm groups said Tuesday.

 

"The farm groups are going to meet again after listening to the government's announcement," said Jose Casado, spokesman for Buenos Aires and La Pampa Rural Society (Carbap).

 

Over the weekend, the director of the agricultural trade office ONCCA, Ricardo Echegaray, told Radio America that the government was set to announce a series of measures to stimulate farm production.

 

Local press reports indicated that a reduction of the export tax on wheat and corn was on the table, in addition to new subsidies. However, the government put off announcing the measures until after the strike concluded to avoid the appearance of bowing to pressure.

 

Farmers are protesting a series of government interventions in the sector, including high export taxes and limits on beef, corn and wheat exports.

 

Buyers offered ARS780 per tonne for spot soy Thursday, up from ARS745 a week ago. May 2009 soy were priced at US$237.30 a tonne at the Buenos Aires Exchange, down from US$239.00 a week ago.

 

Spot corn saw buyers offer ARS300 a tonne in Rosario Thursday, unchanged from a week ago. April 2009 corn was not priced.

 

Meanwhile, exporters offered ARS500 a tonne for spot wheat Thursday, down from ARS530 a week ago. December wheat was priced at US$155 per ton, down from $160 a week ago.

 

US$1 = ARS3.2325 as of October 10, 2008