December 2, 2005

 

Argentina's corn prices down but soybean ended higher

 

 

Argentina's cash soybean prices were up Thursday from a week ago while corn prices closed lower, traders said.

 

Cash corn sold for ARS202/tonne Thursday in Rosario, down from ARS206/tonne a week ago.

 

"Corn is down basically because it followed the declines in Chicago," said Arce, referring to lower prices at the CBOT, the leading commodities market.

 

At least one trader offered US$72/tonne for March 2005-06 futures, unchanged from a week ago.

 

Farmers had sown about 80 percent of the 2005-06 corn crop by Saturday, according to the Buenos Aires Exchange. The same Exchange has forecast 2005-06 corn output at 17.5 million tonnes, down from 19.5 million tonnes a year earlier.

 

The USDA sees Argentina's 2005-06 corn output at 17.5 million tonnes.

 

The Buenos Aires Exchange expects farmers to plant 15.2 percent less corn in 2005-06 than a year ago. It sees planted area at 2.23 million hectares, down from 2.62 million hectares the previous season.

 

As of Nov 25, Argentina had sold 12.345 million tonnes of 2004-05 corn for export, up from 9.48 million tonnes a year earlier, Secretariat data show.

 

 

Soybeans

 

Cash soy traded for ARS490/ tonne Thursday, up from ARS480/tonne a week ago.

 

"Soybean prices are firm, close to their minimum values," said Frogone. "There is good demand from China, we're talking about 450,000 tonnes to 500,000 tonnes, which is uncommon for this time of year. This origin is very competitive."

 

Even so, trading was rather light Thursday because many farmers are uninterested in selling for below the psychological barrier of ARS500/tonne.

 

Meanwhile, Arce said climatic conditions have been good for soybeans.

 

"Rains over past 15 days have eliminated the risk that planting would be delayed," he said. "It has rained well in most places and planting is taking place at a good pace."

 

As of Nov 29, Argentina had sold 9.295 million tonnes of 2004-05 soybeans for export, local Agriculture Secretariat data show. By this time a year ago, Argentina had sold 6.77 million tonnes of 2003-04 soy. Sales of 2005-06 soybeans totalled 1,172,980 tonnes by Nov 29.

 

By Saturday, farmers had planted 59 percent of the 2005-06 soybean crop, according to the Buenos Aires Exchange. The Exchange sees planted area this season at 15.6 million hectares, compared with 14.67 million hectares a year earlier.

 

The USDA has forecast Argentina's 2005-06 soybean crop at a record 40.5 million tonnes.