December 14, 2007

Argentine corn, soy up on CBOT; wheat down on blocked exports

Argentine corn and soy prices were up on the week at the Rosario Grain Exchange on Thursday (December 13, 2007) due to gains at the Chicago Board of Trade, while wheat prices slipped because of the continued closure of the wheat export registry and harvest pressure, according to analysts.

Despite solid demand from exporters, wheat prices fell on harvest pressure as the new crop flooded the market and the continued block of new exports, according to the Rosario Grain Exchange.

On Dec. 3, Argentina extended the closure of the wheat export registry through the end of the month. Earlier this month, the government closed the registry for what it said would be five days in order to study the damage to the new crop from recent frosts.

Spot wheat sold for ARS530 (US$168.66) per tonne Thursday, down from ARS540 a week ago.

January 2008 wheat closed at US$175 per tonne, down from US$177 a week ago.

As of Nov. 29, exporters had declared more than 7 million tonnes of 2007-08 wheat for export, according to the Agriculture Secretariat.

About 11 million tonnes of wheat are expected to be available for export from the new crop, according to the US Department of Agriculture. 

Gains in Chicago pushed up local corn prices, with dryness in many corn areas continuing to provide support, according to the exchange.

Spot corn was traded at ARS350 per tonne, up from ARS320 a week ago.

April 2008 corn sold at US$132 per tonne, up from US$125 last Thursday.

Spot soy sold for ARS850 per  tonne in Rosario Thursday, up from ARS825 a week ago.

May 2008 soy closed at US$240 per tonne, up from US$235 last week.

ARS1 = US$0.319 (Dec. 14)