April 13, 2007

 

Argentina corn prices up on strong export demand, tight spot supply
 

 

Argentine corn prices climbed on the week as tight spot supplies and solid demand from exporters boosted prices at the Rosario Grain Exchange.

 

Farmers are scrambling to harvest soybeans before the crops over mature and are putting off the corn harvest, according to analysts. Heavy rainfall over the past two weeks had prevented fieldwork and some soy is at risk of deteriorating if not harvested fast.

 

"The demand for corn is very high as exporters continue to need merchandise while the advance in the soy harvest in some regions pushed down demand from some soy processors," the Rosario Exchange said in its daily market commentary.

 

Spot corn was traded at ARS372/tonne (US$120.35/tonne) in Rosario on Thursday, up from ARS353/tonne last Wednesday. The market was closed last Thursday for Easter. April 2008 corn slipped to US$112/tonne, compared with US$114/tonne a week ago.

 

Corn futures slid as good weather in the US allowed farmers to make gains in corn planting and decreased speculation that some land planned for corn in the US would end up being turned over to soy, Roagro analyst Carlos Boglioli said.

 

Soy prices were down on the week as farmers took advantage of the sunshine to move rapidly forward with the harvest, taking some supply pressure off processors.

 

Spot soy closed at ARS585/tonne in Rosario, down from ARS607.90/tonne a week ago. May 2008 soy closed down US$3 at US$197/tonne.

 

Wheat was stable on the week, with spot wheat closing at ARS370/tonne, unchanged from last Wednesday. January 2008 wheat gained US$2 to close at US$125/tonne.

 

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