December 8, 2005

 

Argentina's corn and soybean prices end higher

 

 

Argentina's cash corn and soybean prices closed higher Wednesday from a week ago as better prices at the Chicago Board of Trade in recent days helped lift local soybean values here, traders said.

 

Cash soybeans traded for ARS495-500 (US$165-US$167) per tonne Wednesday at the Rosario Cereals Exchange, up from ARS490 a week ago.

 

The Rosario Exchange is Argentina's top cash market.

 

After trading at much lower levels in recent weeks, farmers reacted positively to higher soybean prices this week, selling about 100,000 tonnes of soybeans between Monday and Tuesday, said Hugo Pels of the Buenos Aires-based brokerage Granar SA.

 

"We got a pretty good bounce on beans," said Pels. "We touched that 500 peso (psychological) barrier and we had 100,000 tonnes."

 

As of Dec 5, Argentina had sold 9.295 million tonnes of 2004-05 soybeans for export, local Agriculture Secretariat data show. By this time a year earlier, Argentina had sold 6.77 million tonnes of 2003-04 soy. Sales of 2005-06 soybeans totalled 1,173,180 tonnes by Dec 5.

 

By Saturday, farmers had planted 66.5 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 a year earlier.

 

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

 

"If the weather is good, we'll definitely get to 40 million tonnes," said Pels.

 

 

Corn

 

Cash corn sold for ARS210/tonne Thursday in Rosario, up from ARS202/tonne a week ago.

 

At least one trader offered US$70/tonne for March 2005-06 futures, down from US$72/tonne a week ago.

 

Farmers had sown 82 percent of the 2005-06 corn crop by Saturday, according to the Buenos Aires Exchange.

 

The USDA sees Argentina's 2005-06 corn output at 17.3 million tonnes, down from 19.5 million tonnes a year earlier.

 

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 Dec 2, Argentina had sold 12.495 million tonnes of 2004-05 corn for exports, up from 9.545 million tonnes a year earlier, Secretariat data show.