Buenos Aires, Jun 14th. The database of the MATBA (Buenos Aires Futures Exchange) shows that 5.96 million metric tons of grains were hedged during the past May, reaching a new monthly record. This volume strongly contrasts with 4.16 MMT hedged in May 2018, 2.08 MMT in May 2017 and 2.78 MMT in May 2016.
The merge between the two grains futures exchanges in Argentina (MATBA and ROFEX), the income of market-makers and a record harvest (over 145 MMT) is fueling the use of hedge strategies. During May, soybean accounted for 3.49 MMT or 58% of the total operations. Corn occupied the second place with 1.68 MMT and wheat was relegated to the third place with 0.74 MMT.
“We are really satisfied with the performance of the futures market”, chairman of MATBA, Marcos Hermansson told to eFarmNewsAr. “Basically, the largest corn and wheat harvests impulse the use of futures, plus the high volatility what international markets are shown”, he added.
According to the Buenos Aires Grain Exchange, corn harvest is now estimated at 48 MMT (2MMT more than in the last estimation) while the wheat one at 19,5 MMT. “But it is said that considering the carryover, wheat offer for this commercial campaign goes up to 22/23 MMT”, Hermansson cleared up.
The point is that until today, 23.4 MMT of grains is already operated at MATBA. “We are also beating a record in the open interest”, the chairman adds. “We think we will close the year with more than 50 MMT operated. The only doubt is how the ‘farmer selling’ will evolve because, in this electoral year, farmers tend to ‘sit’ over their grain waiting for the political outcome”.
Hermansson anticipated that they are waiting for the end of the merge with ROFEX, the other grains futures market in Argentina. When this occurs, he will perform as vice-president of the new society.