November 30, 2009

Mexico cash grains trading quiet as US observes holiday

Physical trading was quiet this week in the Mexican cash grains markets as purchasing in the import-dominated trade slowed under the US Thanksgiving holiday, traders and importers said Friday (Nov 27).

"It's been very quiet, both because US prices especially for soy have been rising lately and with the holiday people just took a break from business for a few days," said a trader in central Mexico's Bajio region.

Some "insignificant volumes" were reported to be purchased in the market for imported yellow corn and soy, but even though the peso strengthened, most gains were offset by higher dollar-based US import prices.

The Mexican peso traded in a range between MXN12.81 and MXN13.01 against the US dollar, after trading between MXN12.98 and MXN13.09 last week.

In the local market, the arrival of the new 2009 spring-summer white corn harvest from the key central Bajio region continued to increase and traders said they expected trade to start picking up in earnest in the next few weeks.

Corn and wheat futures were mixed Friday at the Chicago Board of Trade, with December corn up four cents at US$3.96 a bushel but December wheat one-cent lower at US$5.49 1/4 a bushel.

Soy products, meanwhile, were all lower with January soy down 13 cents at US$10.41 1/2 a bushel and March soymeal US$1.50 lower at US$307.80 a tonne.

US$1 = MXN12.8726 (Nov 30)