Bids for June corn in the local market weakened during the week until reaching ARS 2,200 per ton (ARS 100 below past week’s level), but demand from exporters ensured that cash bids for corn traded at a premium of ARS 50 per ton.
Despite strikes held by port workers this week compromising grain delivery, the number of trucks loaded with corn that arrived to the different terminals is 30% above the five-year average. Between March and mid-June, 116,151 have arrived according to “Williams Entregas”, a logistics company that keeps records of deliveries until 6:00 A.M. Hence, the sample is estimated to represent about 50% of total trucks delivering
The outlook for exports of corn from Argentina remains promising. According to FOB prices gathered by Platts (see following chart), Argentina remains the cheapest option for corn between the months of July and October, although shipping prices might significantly alter the equation depending on the destination port.
The elimination of taxes on corn exports has allowed profits to recover even as prices remain lateral in the international market. In fact, profit margins have increased by 30 USD because of the tax cut, and corn sowings have increased around 25% consequently last year, and could increase even a little further for the next crop.
Wheat prices rally on the international market, and sowings rise domestically
Cash bids for export wheat have remained stable over the past week in a range of ARS 2,600 to ARS 2,650 per ton. On the other hand, prices for wheat with a 10.5% protein content and a test weight of 78 kg. per hectoliter traded between ARS 2,700 to ARS 2,750 per ton.
Wheat exports are still going ahead at full steam. According to the NABSA maritime agency, wheat shipments are nearing half a million tons for the first two weeks of June, whereas total shipments for the 2016/17 commercial year (which began in December 2016) amount to 8.8 million tons ( a 30% year-over-year increase).