June 9, 2006
Argentina corn prices down slightly; soy unchanged
Argentina's corn prices ended a bit lower Thursday (Jun 8) from a week ago while cash soybean values were unchanged in light trading.
"Grain prices could not escape from the decline in prices in foreign markets," Roagro, a Rosario-based brokerage, said Thursday.
Cash soybeans sold for ARS520/tonne (US$168.80/tonne), unchanged from a week ago, at the Rosario Cereals Exchange.
Some 40,000 tonnes of cash soybeans were sold Thursday, down from 60,000 tonnes a week earlier.
Exporters offered US$175/tonne for soy futures with delivery in May 2007, unchanged from the previous week.
"Without much demand from local exporters, and in a context where foreign markets were down all day, the offers for grains were lower than they were the previous day," the exchange's Economic Institute said in a commentary. "There only interest that we saw was for oilseeds."
Farmers had collected about 96.6 percent of the 2005/06 soybean crop by Jun 2, according to the Buenos Aires Cereals Exchange.
The US Department of Agriculture has forecast Argentina's 2005/06 soybean crop at a record 40.5 million tonnes while the Agriculture Secretariat sees output at 40 million tonnes.
The Buenos Aires Exchange earlier this week lifted its forecast for 2006/07 soybean production to 40.75 million tonnes from 40.4 million tonnes previously.
By Jun 6, Argentina had sold 4.745 million tonnes of 2005/06 soybeans.
Corn
Cash corn sold for as much as ARS260 per tonne Thursday in Rosario, down from ARS267 a week ago.
"There are few traders interested in buying corn now," the exchange said.
The Rosario Exchange said it was not clear how much cash corn was sold Thursday. A week ago, around 10,000 tonnes of cash corn traded hands at the exchange.
Corn futures for delivery in March 2007 sold for US$86/tonne, down from US$87/tonne a week earlier.
Farmers had harvested almost 84.8 percent of the 2005/06 corn crop by Jun 2, according to the Buenos Aires Exchange.
The USDA has forecast Argentina's new corn harvest at 15.5 million tonnes.
The Secretariat sees it at 14 million tonnes.
Last season, good weather and solid prices led farmers to harvest a record 19.5 million tonnes of corn, according to the USDA. The Secretariat says output last season totalled a record 20 million tonnes.
The Buenos Aires Exchange says farmers have planted 15.2 percent less corn than a year ago. It sees planted area at 2.23 million hectares, down from 2.62 million the previous season.
As of Jun 2, Argentina had sold 4.985 million tonnes of 2005/06 corn, compared with 7.07 million tonnes of 2006/07 corn.