Exporters boosted activity on deferred corn
It is estimated that more than 200,000 tons of corn were traded this week for delivery from May onwards, and there were offers to buy 2017/18 corn. Particularly, May’17 at US$ 155 and Jun’18 at US$ 150 were the most traded ones. There were offers with a wide range of deliveries until the middle of next year due to production record and deliveries logistics problems. Since March 1, 2017 (corn market season), we estimated that 150,000 trucks loading corn have entered Up-River elevators; 20 percentage points above last year and 2015. Exporters are enhancing spot delivery offers and, therefore, CAC prices rose 4.3% this week.
Strong demand boosted soybean cash prices
Due to delays in harvesting and slow farmer selling for Argentina’s 2016/17 soybean crop, crushing industry are beginning to show signs of increasing need. While the US soybean seeding is accelerated, Rosario local prices took off from international declines and traded at $ 3,700, a weekly gain of 2.8%. However, this rebound was not enough to promote negotiations. In spite of the delay of the harvest of 20 percentage points relative to the five-year average, producers are not very thirsty for liquidity because of the possibility to finance their costs until June with credit cards and the profit they got with the sale of the winter cereales. The delay in farmer selling is reflected on the number of trucks arrived to the terminal ports in the Up-River Rosario, which is 38% below last April.
At the same time, average yield for soybean harvested in the core area has fallen 0.2 t/ha from previous week, to 3.8 t/ha, and exceptional productivity in the highlands could not compensate losses in flooded areas. Even in high- tech plots yields are 5 to 10% worse than expected. The following map shows excessive soil moisture in the whole coast and Santa Fe, Córdoba, Buenos Aires provinces. Considering that the grassland absorbs more water than the harvested soil, the situation even more concern.