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28/08/2017 0:00 - Agricultural Commodities Market
SOFÍA CORINA
Wheat and late soybean profit margins get all the applause

The double crop wins bets on single-soybean crop in the Argentina core region. In spite of recent price falls, the winter cereal combined with a late oilseed in the same season allow to reduce fixed costs average in rented field, surpassing the net margin of early soybean in 160%.

The possibility to follow wheat with another a crop in the same season allows sharing of the fixed costs with late soybean, taking advantages over the early soybean. Because of that, combined with attractive wheat prices at sowing, encouraged fine-grain planting for the second consecutive season. It should be noted that the good intentions of planting were not fully fulfilled at national level due to waterlogging.

 

Profit margins follow price movement and per hectare yields, while costs depend on the distance to port areas, macroeconomic variables and productive conditions of each farmer. In addition, producers who hedge their price risk with futures make a difference by taking good opportunities. At the beginning of July 2017, wheat futures for December reached USD 180 per ton; an exceptional value that surpassed the desired prices in a normal budget. However, even with a price's wheat of up to 16 dollars less, the combination of wheat and soybean leads the ranking of the agricultural margins in the core region.

 

Corn would be another of the protagonists this season. It is estimated that the area could grow by 7% compared to last season, although excess moisture could also be a problem for planting.

Finally yet importantly, early soybean net margins are lower than the other combinations, even adjusted for rented fields, which have a higher risk.

 

 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
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