October 2, 2009

Argentine soy prices fell on the week ended Thursday (Oct 1) at the Rosario Grain Exchange amid slack demand from exporters and limited offers from sellers.

 

A decline in prices for the oilseed on the Chicago Board of Trade also weighed on local prices, the exchange said.

 

A lack of sellers on the floor didn't spur buyers to pay more for soy, according to the exchange.

 

Spot soy were traded at ARS942 (US$245.2) a tonne in Rosario on Thursday, down from ARS950 (US$247.3) a week earlier.

 

May 2010 soy futures traded at US$206, unchanged from a week ago.

 

Argentine soy are in tight supply this year because of drought damage last season, and this is leading exporters to cut back on raw soy shipments and focus on turning beans into meal.

 

Soy exports in the first eight months of the year fell to 4.1 million tonnes from 9.1 million tonnes a year earlier, according to the latest data from the agricultural health and sanitation service, Senasa.

 

Over the same period, soymeal exports rose to 8.4 million tonnes from 6.8 million.

 

According to the Buenos Aires Cereals Exchange, 2008-09 soy production plunged to 32 million tonnes from 46 million tonnes a year earlier due to a severe drought.

 

There was no trading of spot corn contracts Thursday even after the country's agricultural trade office, ONCCA, said late Wednesday (Sept 30) it was scrapping limits on exports of the crop as part of an agreement with exporters. The resolution still has to be published in the government's Official Bulletin in order for it to take effect, the exchange said.

 

Corn futures traded at US$105 per ton for delivery in March-April, the exchange said.

 

Wheat futures weren't traded either on Thursday. Spot wheat hasn't been traded since the middle of June.

 

"The market remains empty despite the reopening of wheat exports," the exchange said.