November 23, 2009

 

Modest trade in quiet market for Mexico cash grains

 

 

Physical trading continued at modest pace this week in the Mexican cash grain markets with some buying reported in the new Bajio white corn crop but limited purchases in the import market, traders and importers said Friday (November 20).

 

They said that although a more stable peso supported purchasing and contract fixing in the import-based grain market, currency volatility continued to be present as US prices rose.

 

Some buying was reported in the market for imported grains with both yellow corn and soy purchases seen, but volumes were reported to be insignificant and only enough to cover nearby demand for the animal feed grains industry.

 

"The peso has stabilized in a lower range during this last week and that certainly helps the market, but the problem is that just as we were getting better peso prices US prices for soy jumped," said one trader in Mexico City.

 

The Mexican peso traded in a range between MXN12.98 and MXN13.09 against the US dollar, after trading between MXN13.04 and MXN13.27 last week.

 

In the local market, the arrival of the new 2009 spring-summer white corn harvest from the key central Bajio region helped keep some activity going, with pace of new-crop shipments reported across the market.

 

"There has been good interest in the Bajio crop and we are definitively starting to see more volume finding its way to the market," said a physicals trader with an importer from central Mexico.

 

Corn and wheat futures were lower Friday at the Chicago Board of Trade, with December corn down 2 1/2 cents at US$3.92 1/2 a bushel and December wheat 4 cents lower at US$5.58 1/2 a bushel.

 

Soy products, meanwhile, were mixed with January soy up 4 cents at US$10.43 a bushel, but December soymeal was US$1.40 lower at US$317.00 per a ton.

 

US$1 = MXN13.04 (Nov 23)