October 6, 2008

Mexico yellow corn, soy trade in volatile market

Physical trading was modest this week in the Mexican cash grain markets amid continuing volatile US grains markets, but yellow corn buying and shipping were reported, traders said Friday (October 3).

"There's been trade, mostly yellow corn with the prices coming down because even if it's still expensive it's not as expensive as it was a few months ago," said one Mexican trader from the central Bajio region.

Focus on new physical trade was reported in the yellow corn market, in addition to some smaller loads of soybean and soymeal purchases by importers selling to the local livestock industry.

Trading in other grains remained quiet amid the continuing fluctuations in the key US grains market, but a number of shipments of sorghum fixed in contract in August were now seen underway for final delivery in Mexico.

Trading in Mexico's national white corn crop also remained slow with supply from the now-completed 2007-08 fall-winter harvest in northern state of Sinaloa tight and most of the crop already sold.

Trade in the white corn market is not expected to start picking up until closer to the harvest in the central Bajio region, Mexico's second-biggest commercial white corn crop after Sinaloa. The Bajio spring-summer harvest starts in late October.

Corn and wheat futures ended mixed Friday at the Chicago Board of Trade. Active December corn futures settled unchanged at US$4.54 a bushel but December wheat closed up 4 1/4 cents at US$6.40 a bushel, although down on the week.

Soy products ended lower Friday. Active November soy futures settled down 12 cents at US$9.92 a bushel and December soymeal closed US$4.70 lower at US$269.80 a short tonne.