BUENOS AIRES (Dow Jones)--Argentine soy prices lost further ground this week
as a bumper crop moved closer to market.
Spot soybeans traded at ARS820 ($212) a metric ton at the Rosario Grain
Exchange Thursday, down from ARS830 a week earlier.
Local and international prices came under pressure due to lower demand for
U.S. soybeans ahead of the upcoming harvest of record crops in South America,
the Rosario exchange said.
Brazil, Argentina and Paraguay are set to smash previous soybean output
records this season, as favorable weather conditions boosted crops.
On Thursday, the Buenos Aires Cereals Exchange increased its forecast for
Argentina's 2009-10 soy production to 53.5 million metric tons, up 1.5 million
tons from last week's estimate. Output is expected to be up more than 20
million tons from last season's drought-battered crop.
"Conditions couldn't be better for the developing crops," as soaked fields in
the central farm belt dried out this week and parched fields up north saw
showers, the exchange said.
Farmers had been worrying that excess rainfall through the harvest season may
damage the crops, but the exchange said the latest weather models predicted
relatively dry weather through the harvest season.
The first early soy fields were harvested over the past week, according to
May 2010 soy futures traded at $213 and $215 a ton, down from $215 and $216 a
Meanwhile, May corn contracts traded at $108 a ton in Rosario Thursday. Spot
corn wasn't traded.
Exporters are leading corn buying with the government issuing export permits
at a brisk pace, the Rosario exchange said.
Wheat trade remained stalled as farmers wait for buyers to come out with the
higher prices agreed with the government.
-By Shane Romig, Dow Jones Newswires; 54-11-4103-6738;