October 27, 2006

 

Argentina's soy, corn continue recent gains with CBOT

 

 

Argentine soy and corn prices followed Chicago higher over the past week, according to traders.

 

Strong demand for beans and oil spurred by biodiesel demand pushed up prices, Roagro analyst Javier Cabanellas said in an e-mail market commentary.

 

Cash soybeans sold for ARS575 per tonne Thursday, up from ARS560 a week ago. May 2007 soybeans closed at US$182 per tonne, up from US$178 a week ago.

 

The Agriculture Secretariat estimates that 15.5 million-15.8 million hectares will be planted with soy during the 2006/07 crop cycle.

 

The USDA estimates Argentina's 2006/07 soybean crop at a record 41.3 million tonnes compared with 40.5 million tonnes the previous year.

 

 

Corn

 

Corn values continued recent gains, following strength in world corn prices.

 

Cash corn sold for ARS350 per tonne Thursday in Rosario, up from ARS330 a week ago. April 2007 futures rose to US$101 per tonne compared with US$97 a week ago.

 

Like wheat, new-crop corn export commitments are soaring, with declarations reaching 6.1 million tonnes. The pace is far ahead of export commitments declared at the same date last year.

 

Traders exchanged 15,000 tonnes of old-crop corn Thursday.

 

Argentina will plant an estimated 3.3 million hectares with corn during the 2006/07 crop cycle, up 3 percent from 3.18 million in 2005/06, according to the Agriculture Secretariat.

 

The US Department of Agriculture estimates that Argentina will produce 17.5 million metric tonnes of corn during 2006/07.