There has been a fall in the spread (FOB price difference) between American soybeans and Argentine and Brazilian soybeans, as the market anticipated the possibility of a commercial truce between the US and China in the G-20 meeting in Argentina. Consequently, Argentine and Brazilian FOB prices dropped as US soybean recovered, reducing the price difference between South American and US beans.
Meanwhile, Argentine corn FOB price gained ground last week by increasing USD 6/t, influenced by the evolution of soybeans price. In this recovery context, corn prices at Rosario's spot market rose by USD 5.4/t. Rosario Board of Trade reference price on Thursday 6 was USD 142.7/t.
According to Secretariat of Agribusiness data, the marketing pace for both forwards to harvest and previous cycle's remaining corn, is similar to previous seasons' performances. Export sector's corn purchases reach 20.72 Mt, while export sales make 19.23 Mt. This numbers underline the good volume of export business. Available 17/18 corn stocks become tighter over time and the business focuses on 18/19 corn.
The marketing of 2018/19 corn forwards keep a very similar rhythm to that of the last three cycles. Currently, 11% of the projected 43 Mt corn production has already been commercialized. Moreover, based on Secretariat of Agribusiness data, the whole 17/18 soybean crop –that is estimated at 35 Mt- has already been committed this year. Despite this fact, the price of soybeans in the spot market, as well as the futures, declined in the last week. The spot market price had a weekly fall of USD 1.75/t while May future dropped by USD 4.3/t.
Soybean planting activity rebounded in the past week (12 p.p.) completing 59% of the target planted area. Despite the fact that the progress is below five-year average, the weekly progress was outstanding. Corn, on the other hand, also shows good progress, completing 65% of the planted area