November 21, 2008

Argentina grains mostly lower on week due to CBOT losses


Most Argentine grain contracts closed lower on the week at the Rosario Grain Exchange Thursday (November 20) as steep losses at the Chicago Board of Trade and slack local demand weighed on prices.


The losses came despite the Agriculture Secretariat's report Thursday confirming a sharp drop in wheat production and corn area, the Rosario Exchange said.


Argentina's 2008-09 wheat production will total 10.1 million tonnes, down from 16 million tonnes last season, the Secretariat said in its monthly crop report Thursday.


The Secretariat had forecast wheat production of between 9.5 million and 11 million tonnes in its October report.


Drought early in the season, lower planted area, continued dryness and less fertilizer use this season all contributed to the drop in production, the Secretariat said.


With weather conditions remaining dry, the Secretariat said it is watching closely to see if production may be down even further.


The Secretariat also slightly trimmed its forecast for corn area to 3.34 million hectares from 3.4 million hectares seen in the October report.


Spot soy was traded at 700 Argentine pesos (US$210.21) a tonne Thursday, down from ARS710 a week ago.


The only bright spot came in soy futures.


May 2009 soy were priced at US$190 a tonne up from US$185.00 a week ago.


Corn trade was light with little interest by buyers and sellers to seal deals at current prices, the Exchange said.


Spot corn closed at ARS270 a tonne in Rosario Thursday, down from ARS305 a week ago.


April 2009 corn sold at US$95 a tonne, down from US$115.


Spot wheat was traded at ARS370 a tonne in Rosario Thursday, down from ARS430 a week ago.


December/January wheat was priced at US$107 a tonne, down from US$125 last week.

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