September 12, 2008

  

Argentine wheat down on CBOT; spot soy up on crusher demand

 

 

Argentine grain prices were generally lower on the week at the Rosario Grain Exchange Thursday (September 11) due to weaker prices at the Chicago Board of Trade, although strong demand from local processors pushed up spot soy prices, according to traders.

 

Despite falling spot soy prices in Chicago, local crushers stepped in to the market with higher offers and bought about 10,000 tonnes Thursday, said a trader who asked not to be named.

 

Volume had been very low earlier in the week, and most sellers are holding out for prices to pass the 900 peso (US$292.21) mark, the trader said.

 

Spot soy was traded at ARS850 a tonne at Rosario Thursday, up from ARS830 a week ago.

 

May 2009 soy traded for US$266 a tonne, down from US$274 a week ago.

 

Just one exporter was buying Thursday, and paid ARS550 a tonne for spot wheat, down from ARS580 last week. Volume totalled about 10,000 tonnes.

 

January 2009 wheat sold for US$182 a tonne, down from US$195.10 a week ago.

 

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

 

So far this year, ONCCA has authorized 9.5 million tonnes of wheat and wheat flour exports.

 

Corn trade was light Thursday, with volume totalling about 2,000 tonnes, the trader said.

 

Spot corn sold for ARS410 a tonne at Rosario Thursday, unchanged from a week ago.

 

April 2009 corn sold for US$150 a tonne, down from US$154 last Thursday.

 

At the beginning of this month, the government warned that the amount of corn available for export is running out.

 

The national trade office, or ONCCA, authorized the export of 331,173 tonnes more corn from the 2007-08 crop, the surplus remaining minus the domestic need calculated by the government.

 

However, further exports may be allowed if confirmed stocks increase due to additional declarations made by those holding corn, ONCCA said.

 

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