March 19, 2010

Argentina wheat traded in grain exchange for first time

Wheat was traded at the Rosario Grain Exchange for the first time in three months Thursday (March 18), with an exporter stepping in to pay the full price under a price accord with the government.

Spot wheat changed hands at ARS592 (US$153) a tonne.

Under the price accord reached late last year, wheat exporters agreed to pay farmers a theoretical Free-Alongside-Ship price calculated based on the international price minus export taxes and the costs of getting the grain to port. However, trade has been stalled as buyers balked at paying the full price and sellers held out.

Meanwhile, soy prices edged higher this week in line with gains at the CBOT, the exchange said. Spot soy traded at ARS840 (US$217.53) and ARS850 (US$220.12) a tonne in Rosario, up from ARS820 (US$212.35) a week earlier.

May 2010 soy futures traded at US$218 and US$225 a tonne, up from US$213 and US$215 a week ago. However, gains in soy prices were limited as farmers began to harvest what's expected to be a record crop.

In addition, May corn contracts traded at US$110 to US$114 a tonne in Rosario Thursday, up from US$108 a week ago.