November 28, 2008

Argentina soy prices increase corn prices decrease; wheat up as export quota increased


Argentina soy prices were up on the week at the Rosario Grain Exchange Thursday (November 27), in line with gains at the Chicago Board of Trade.


Spot wheat also rose after the government increased the amount it will authorize for export from the 2007-08 crop, while the continued closure of corn exports weighed on corn prices.


Soy found support from expectations of high demand from China and hot, dry weather in South America, which is slowing planting and development of the crop, the Exchange said.


Spot soy was traded at ARS710 (US$211) per tonne Thursday, up from ARS700 a week ago.


May 2009 soy was priced at US$196 tonne, up from US$190 a week ago.


Local corn prices slid due to the continued closure of exports. This week, the agriculture trade office ONCCA said that just 7,500 tonnes of old crop corn remains available for export. ONCCA isn't expected to authorize any more corn exports from the 2007-08 crop.


Spot corn closed at ARS260 a tonne in Rosario Thursday, down from ARS270 a week ago.


April 2009 corn sold at US$90 per tonne, down from US$95.


Spot wheat was traded at ARS380 per ton in Rosario Thursday, up from ARS370 a week ago. Trade volume was high, the Exchange said.


Spot wheat benefited by news that the government would approve almost a million more tonnes for export from the 2007-08 crop.


Argentina still has 1.78 million tonnes of wheat available for export from the 2007-08 crop, national trade office ONCCA said Monday.


The 1.78 million tonnes of wheat which will be cleared from export is comprised of 850,000 tonnes previously approved for export, but not sold and 926,167 tonnes of additional wheat based on new declarations of stocks, ONCCA said.


December/January wheat was priced at US$105 per tonne, down from US$107 last week.

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