April 2, 2004
Argentina Corn Prices Up Following USDA Report
Argentina corn prices rose substantially after the U.S. Department of Agriculture indicated farmers will plant less corn than previously expected. Corn values rose to about ARS270/ton Thursday in Rosario, up from ARS 240 a week ago.
"Demand for corn is clearly outweighing supply now," said a Rosario-based trader.
Moreover, it appears that China, which last year was the world's No. 2 corn exporter, may be entering the market as a buyer, according to Mircoli.
"This is one reason for the increase," Mircoli said.
In an e-mail commentary Thursday, the Rosario-based brokerage Roagro also noted the significance of China, saying, "We need to keep in mind an eventual change of attitude, from exporter to importer."
"Has the hour arrived for this market?" Roagro asked.
As of Saturday, farmers had finished collecting 27% the 2003-04 corn crop, according to the Secretariat.
The Secretariat last month raised its estimate for 2003-04 corn output 12.4 million tons, up from 12.1 million a month ago.
Meanwhile, the exchange sees production at 12.8 million tons.
Argentina produced 15 million tons of corn in 2002-03, according to the Secretariat.
The USDA has forecast 2003-04 corn production at 12.5 million tons.
In 2003, Argentina was the No. 3 exporter of corn, behind China and the U.S. However, Argentina is expected to recover the No. 2 spot in 2004 as China halts its corn exports.