September 26, 2008

 

Argentina grains close higher on drought, crusher demand

      

 

Argentine grain prices were generally higher on the week at the Rosario Grain Exchange Thursday (September 25) on strong demand from local buyers and continued drought which is hurting the developing wheat crop and stalling corn planting.

 

Local wheat prices found support from the continued drought which is affecting the developing crop, the Rosario Exchange said.

 

Exporters paid ARS530 a tonne for spot wheat, up from ARS520 last week.

 

January 2009 wheat sold for US$165 per tonne, unchanged from a week ago.

 

Yields from Argentina's 2008-09 wheat crop are likely to be down between 10 percent and 15 percent from last season due to continued dry weather, according to the Buenos Aires Cereals Exchange.

 

Production may fall by as much as 25 percent from the 16 million tonnes grown last season, according to the Exchange.

 

Soy prices benefited from solid demand from crushers, according to the Exchange.

 

Spot soy was traded at ARS880 a tonne in Rosario Thursday, up from ARS810 a week ago.

 

May 2009 soy weren't traded in Rosario Thursday, but was priced at US$269.50 a tonne at the Buenos Aires Exchange, up from US$257.50 a week ago.

 

Spot corn sold for ARS400 a tonne in Rosario Thursday, up from ARS380 a week ago.

 

April 2009 corn wasn't traded in Rosario, but the reference price rose to US$150 a tonne, up from US$138 last Thursday.

 

Old crop corn exports were shut down last week, as the calculated surplus from the 2007/08 crop has been sold, according to the agricultural trade office ONCCA.

 

The government had already approved the export of about 14 million tonnes of corn this year from a total 2007/08 crop of 20.5 million tonnes.

 

Domestic need for this year was pegged at 6 million tonnes.

 

ONCCA hasn't yet started accepting export declarations for the 2008/09 corn crop. Planting recently commenced with production estimated at 19 million tonnes, the US Department of Agriculture said.