November 20, 2009
Argentina grain prices post strong gains on dollar weakness
Argentine grain prices posted solid gains on the week at the Rosario Grain Exchange Thursday (November 19) in line with international gains spurred by dollar weakness.
Spot soy were traded at ARS1020 (US$267.72) a tonne at the Rosario Grain Exchange Thursday, up from ARS980 a week ago.
May 2010 soy futures traded at US$238 and US$240 a tonne in Rosario Thursday, up from US$228 and US$230 a week ago.
Despite the better soy prices, trade was muted on Thursday as farmers continued to hold out for higher prices, the Rosario Grain Exchange said.
Spot corn was traded at ARS501 a tonne Thursday. The contract wasn't traded a week ago. March 2010 corn contracts changed hands at US$125 per tonne, up from US$120 a week ago.
January 2010 wheat sold at US$148.50 a tonne Thursday, up from US$130 a tonne Thursday. Spot wheat wasn't traded.
Corn and wheat trade has been stunted so far this year due to continued government intervention in grain markets.
During the first 10 months of the year, wheat was traded on just 64 of the 207 days the Rosario Grain Exchange was open. Corn was traded on just 108 of those days, local think tank Fundacion Mediterranea said this week.
Similar results were posted during the same period in 2008, when a series of farm strikes over four months shut down the exchanges, in addition to sporadic export closures.
Traders are frequently unable to close deals for the two grains due to repeated closure of corn and wheat exports and government price accords with millers and exporters, according to Fundacion Mediterranea.
