In the local wheat cash market, volume traded increased sharply when bids went up to $ 2,650/t while forwards contracts for wheat 2017/18 where priced at USD 170/ton, seducing the producers. Meanwhile, exporters have already purchased 1.4 million tons of 2017/18 wheat, the highest volume since 2001.
In Argentine lands, wheat planting is advancing slowly at the core producing area. Water excesses are still preventing further advance in La Pampa and southern Buenos Aires province. Nevertheless, where seedings could be completed, the plants present a generally good condition.
As regards to local corn market, prices feel the pressure of the late harvest crop that is taking place in Argentina. Exporters have offered ARS$ 2,100 and 2,150/ton, without convincing farmers to sell. The cereal delivered from March to May 2018 was priced at USD 147 to 150 per ton. Meanwhile, for the June / July 2018 delivery, some contracts were made at around USD 143-145 / t.
If we look at the volume acquired by the exporting sector until June 21st, although this year the volume is higher than in the last marketing year, when compared with the production obtained, the percentage decreases. In the 2015/16 marketing year, export purchases represented 41% of total production, while this year this percentage dropped to 39% of the 38 million tons produced.