October 9, 2009

Argentine grain prices got a lift this week from gains at the Chicago Board of Trade (CBOT).

Soy prices benefited from fund buying in the US and a weaker dollar, the Rosario Grain Exchange said.

International corn prices got a boost from worries over frost damage in the US, the exchange said.

Spot soy were traded at ARS970 (US$253) a tonne in Rosario Thursday (Oct 8), up from ARS942 a week ago. May 2010 soy futures traded at US$212 and US$213 a tonne, up from US$206 a week ago. Spot corn wasn't traded Thursday, but March 2010 contracts changed hands at US$108 per tonne, up from US$105 a week ago. Wheat futures weren't traded either Thursday. Spot wheat hasn't been traded since mid June.

Meanwhile, on Friday Argentina's agricultural trade office, known as ONCCA, published a resolution putting a council in charge of determining how much corn and wheat supplies can be exported. The resolution allows for a reopening of exports on condition that domestic supplies are sufficient.

The council will be made up of the president of ONCCA and representatives of the Production Ministry, Commerce Secretariat and the federal tax agency, as well as from the Center of Cereals Exporters and the Argentine Milling Industry Federation.

According to the resolution, eight million tonnes of corn and 6.5 million tonnes of wheat must be set aside from the 2009-10 harvest to meet domestic demand. With the Rosario Grain Exchange forecasting 2009-10 corn production at about 16 million tonnes, around eight million tons will be available for export.

For wheat, the Rosario Grain Exchange says 2009-10 production is likely to total about 7.4 million tonnes, leaving just over 900,000 tonnes available for export.