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 News

25/10/2017 0:00 - Agricultural Commodities Market
EMILCE TERRÉ
A stable week for grains

In the global market, abundant supply is offset with the positive signs on the demand side, leaving the prices relatively unchanged during the week. Without any external signals of significance, the local market did not show big changes in prices and the activity was concentrated in contracts with near delivery.

After a delayed start of the corn harvest in United States in 2017, forecasts for dry weather over the next week in the Midwest, main grain producer area, enable to revive the optimism for the crop progress.

As the first graphic shows, until last week the only 28% of the projected area had been harvested, quite behind the 46% of the last campaign as well as the 52% average of the last five years.

 

The bearish pressure from the US harvest are offset by the strong external demand for grain, after USDA reported weekly exports for 1.3 million tons, far above market expectations of about 800 thousand to 1.1 million tons. Thus, on Thursday corn futures in the Chicago Market closed without change regarding the previous week to USD 137.3 per ton.

In the Rosario spot market, cash bids for corn remained relatively unchanged during the week, with buyers offering ARS 2,350 per ton. Bids for new crop corn for April delivery started at around USD 143 per ton for delivery in April, with a USD 2 per ton premium for march delivery. Buyers of late new crop corn, with deliveries from July to September, were looking to pay up to USD 142 per ton.

Signs of weakness in corn bids disappeared once fears of a strong rain system in our zone appeared. According to GEA, about 100,000 hectares that were going to be planted with corn will move to soybeans.

The global corn market is currently feeling pressure from expectations of a large Brazilian crop. Just this week, USDA increased the estimate for the Brazilian corn crop 2016/17 to 97.7 million ton due to better yields. This would mean a 46% increase in supply from Brazil.

 
No fundamental news for wheat, Argentina is focus in the next crop

Wheat for nearest delivery in CBOT closed at USD 157.6 per ton, a 1% increase over the past week. USDA reported total weekly exports of 615,400 tons, surpassing market estimates of between 250,000 and 450,000 tons.

In the local market, cash wheat bids fell to ARS 2,850 per ton, ARS 50 below previous week levels. This drop resulted in slower trading activity. New crop wheat bids reached USD 165 per ton for delivery between November and January, whereas buyers offered USD 170 for wheat to be delivered between February and March. Export commitments stand at 11.5 Mt for the current crop cycle and 1.2 million for the next year.

The grain remains in a critical stage of its development in the core area of the country, with 70% filling grains and 15% flowering according to GEA. In certain locations of Santa Fe, signs of fusarium were seen, and in Buenos Aires there are alerts of Puccinia Graminis

 

Wheat and wheat flour exports might increase in the following marketing year given downward adjustments to Brazil’s wheat crop, which is expected to fall 23% due to dry conditions and cold temperatures that gave way to stunted growth

 

 Institutional video


Institutional Video of the Bolsa de Comercio of Rosario (Rosario Board of Trade)

 Rosario Board of Trade

The Rosario Board of Trade is a centennial institution located in Rosario, in the most important agroindustrial zone of Argentina. Throughout its history it has created and boosted transparent, solid and reliable markets: the Grains Physical Market, the Futures Market, the Capital Market, and the Livestock Market.

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Bolsa de Comercio de Rosario Córdoba 1402 - S2000AWV
TE: (54 341) 5258300 / 4102600
TE: (54 341) 5258325 (Complejo de Laboratorios - servicioalcliente@bcr.com.ar)
Rosario - Santa Fe - Argentina

Oficina Buenos Aires Reconquista 458 piso 7° - C1003ABJ - Cdad. de Buenos Aires.
Tel: (54 - 011) 43280390/1484 43939391/9649- Fax: (54 - 011) 43939649
contacto@bcr.com.ar