Argentina soybean price declines, peso is strong, demand is low

Lead: Buenos Aires, Reuters, June 12: soybean prices in Argentina fell for the fourth consecutive trading day on Wednesday as demand for exports fell and the peso strengthened Chicago Board of trade's soybean futures fell, also to Argentina's local soybean pressure The fall in Chicago soybean futures ended Wednesday's trade as the U.S Department of agriculture increased soybean acreage and production in 2002 / 03 The fall in Argentina's soybeans began on Friday, and in the two weeks before that, local soybeans prices had been rising almost nonstop The main cause of the soybean price drop is the stronger Peso exchange rate Exchange rates are key to price movements, as oilseeds and food are denominated in US dollars in the world market A weaker Peso pushes prices higher, which in turn puts pressure on prices On Wednesday, the peso traded at 3.51/3.53 to the dollar, compared with 3.52/3.54 to the dollar on Tuesday The National Bank of Argentina quoted 3.423 pesos to the dollar, compared with 3.438 on Tuesday The exchange rate provided by the national bank refers to the exchange rate used by the central bank to pay in Peso when the exporter deposits the US dollar of grain market income into the central bank In addition to the higher peso, export demand has also decreased in recent days Rosario's traders say all factors are negative, so there's no reason to expect prices to go higher Chicago's soybean futures fall has come under a lot of pressure, as well as poor demand from exporters In Rosario, soybean prices fell 10 pesos to 473 pesos a ton, or $138.10; in the port, sales of corn, wheat and sunflower seeds were very low Corn prices in all ports remained stable as the strength of Chicago corn offset the impact of the downturn in local demand Rosario's corn price is 240 pesos, while quequequen and Bahia Blanca trade at 230 to 235 pesos per ton The price paid by the wheat processing plant for wheat was 450-460 pesos per ton, the same as yesterday Rosario's price of wheat for export is 390 pesos per ton, while in Bahia Branca and quequequen it is 420-425 pesos In Rosario, sunflower seed prices fell 4 pesos to 550 pesos per ton Prices in Bahia Blanca and quequequin were stable at 540-550 pesos per ton (author:) share to feed Weibo share to: