February 29, 2008

Argentine corn, soy up on CBOT; wheat stalled on export close

Argentina corn and soy prices were up on the week at the Rosario Grain Exchange, in line with the Chicago Board of Trade, while wheat was not traded for another week on extended closure of the export registry.

The Rosario Grain Exchange said the gains in Chicago should have also pushed up local prices, but they are disconnected from the world due to the closure of exports and the continued intervention of the government.

Spot wheat has not been traded in Rosario since February 11, when it closed at ARS570 (US$180.52).

Wheat was not traded at the Buenos Aires Cereals Exchange on Thursday either, but last sold there at US$187 per tonne.

Argentina extended the closure of the wheat export registry on Thursday, preventing any shipments before April 8. Previously, the government had said it would allow wheat exports starting March 17.

Exporters must register export commitments with the government before being allowed to ship grains.

At the end of January, the agriculture secretariat announced that an additional 2 million tonnes or 400,000 tonnes per month over the next five months would be made available for export, but has repeatedly put off accepting export commitments.

Spot corn was traded at ARS500 (US$158) a tonne, up from ARS480 (US$152) a week ago. March and April 2008 corn sold at US$156 a tonne Thursday, up from US$152 a week ago.

Spot soy sold for ARS1090 (US$345) a tonne Thursday, up from ARS1070 (US$339) a week ago. May 2008 soy closed at US$340 a tonne, up from US$315 last week.