October 16, 2009

Argentine soy futures posted moderate gains on the week on rising vegetable oil prices and solid local demand, according to the Rosario Grain Exchange.

 

May 2010 soy futures traded at US$218 and US$220 a tonne, up from US$212 and US$213 a week ago.

 

Spot soy were traded at ARS970 (US$254) a tonne in Rosario Thursday, unchanged from a week ago.

 

Spot soy trade was muted as many sellers are holding out for ARS1,000 a tonne before making deals, the exchange said.

 

Spot corn wasn't traded Thursday, but March 2010 contracts changed hands at US$105 per ton, down from US$108 a week ago.

 

Corn trade was quiet despite news that the government approved export permits for 415,125 tonnes of new crop corn.

 

An increase in the corn dealing is expected following the permit approvals, but exporters have a year to actually ship the corn.

 

Last week, Argentina's agricultural trade office, known as ONCCA, published a resolution putting a council in charge of determining how much corn and wheat supplies can be exported.

 

The resolution allows for a reopening of exports on condition that domestic supplies are sufficient.

 

According to the resolution, 8 million tonnes of corn and 6.5 million tonnes of wheat must be set aside from the 2009-10 harvest to meet domestic demand.

 

With the Rosario Grain Exchange forecasting 2009-10 corn production at about 16 million tonnes, around 8 million tonnes will be available for export.

 

For wheat, the Rosario Grain Exchange says 2009-2010 production is likely to total about 7.4 million tonnes, leaving just over 900,000 tonnes available for export.

 

ONCCA has so far issued 309,000 tonnes of new crop wheat export permits, according to the Rosario Exchange.

 

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