August 29, 2008


Argentine wheat up on export demand; corn down on CBOT



Argentine spot wheat prices closed higher on the week, the Rosario Grain Exchange said Thursday (August 28), on strong demand from exporters.


"New exporters turned up and upped their offers," the Rosario Grain Exchange said in a report.


Exporters paid ARS590 a tonne for spot wheat in Rosario Thursday, up from ARS580 last week. Spot wheat volume totalled 20,000 tonnes.


January 2009 wheat sold for US$190 per tonne, down from US$192.60 a week ago. Volume was negligible.


Earlier this month, the government approved an additional 1.4 million tonnes of wheat for export. The amount likely represents the last wheat cleared for export from the 2007-08 crop.


So far this year, the national trade office, or ONCCA, has authorized 9.5 million tonnes of wheat and wheat flour exports.


Corn prices recovered partially Thursday from losses earlier in the week due to solid domestic and exporter demand, despite the losses at the Chicago Board of Trade, the Exchange said.


Spot corn sold for ARS435 a tonne in Rosario Thursday, down from ARS455 a week ago. About 7,000 tonnes of spot corn changed hands.


April 2009 corn sold for US$158 a tonne, down from $160.40 last Thursday.


On Wednesday, the government said that the amount of corn available for export is running out.


The ONCCA authorized the export of 331,173 tonnes more corn from the 2007-08 crop.


The amount represents the surplus remaining minus the domestic need calculated by ONCCA. Further exports may be allowed if confirmed stocks increase due to additional declarations made by those holding corn, ONCCA said in a release.


The government has already approved the export of 13.7 million tonnes of corn this year.


Currently, declared corn stocks total 5 million tonnes, according to ONCCA. With domestic need for this year pegged at 6 million tonnes and 1.4 million tonnes already processed and placed in the local market, 413,966 are still looking for a buyer.


So, with 20 percent being withheld for in case of contingency, ONCCA arrived at the 331,173-tonne figure, which will be approved for shipment.


Spot soy was traded at ARS900 a tonne in Rosario Thursday, unchanged from a week ago. Volume totalled 7,000 tonnes.


May 2009 soy traded for US$282.60 a tonne, down from US$285 a week ago.   

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