July 13, 2007

 

Argentina soy up on CBOT but energy problems limit gains

 

 

Argentina's grain prices closed higher at the Rosario Grain Exchange Thursday (July 12) on similar moves at the Chicago Board of Trade, but gains in soybeans were limited by energy problems at crushing plants, according to analysts.

 

The country suffered an unusually strong cold snap this week. With heating to homes threatened, the government has been cutting power supplies to industry as high demand outstrips supply.

 

"There wasn't much interest from buyers due to the ... energy crisis," the Rosario Grain Exchange said.

 

Spot soy closed at ARS642 (Argentina peso) or US$207 per tonne, up from ARS625 a week ago. Spot volume totalled 35,000 tonnes.

 

May 2008 soy traded at US$220, up from US$216 last Thursday (July 12). Some 20,000 tonnes of soy futures were traded.

 

Demand from exporters pushed up corn prices, Roagro analyst Carlos Boglioli said.

 

Spot corn was traded at ARS350 per tonne, up from ARS325 a week ago.

 

April 2008 corn was traded at US$112 per tonne. Corn futures hadn't been traded yet this month, but closed at US$114 per tonne on June 21.

   

January 2008 wheat closed at US$165 per tonne, unchanged from a week ago. New-crop trade volume totalled 15,000 tonnes.

 

Spot wheat was traded at ARS440 per tonne Thursday, also unchanged from a week ago.