Buenos Aires, August 1st. July marked another month surpassing futures operation in comparison with 2018. Last month, 3.83 million metric tons of grains were hedged at the Buenos Aires Futures Exchange (MATBA), 19% up the same month 2018. Year versus year, the “star” grain was the corn, because this July 1.43 MMT was hedged versus 0.58 MMT last year. The soybean operation slightly went back from 1.75 MMT July 2018 to 1.61 MMT this year.

July marks the consecutive fourth month surpassing the 2018 registers and the fifth in the year. Only February, March and April shows a lower operation. Therefore the accumulated hedging this year climbs to 30.01 MMT versus 27.26 MMT, marking a 10% increase.

 

Concerns about wheat prices

Yesterday, the January 2020 wheat price (new harvest) closed US$176 per tonne, versus US$219 for the August 2019 contracts, i.e. US$43 less per tonne. Farmers are planting the largest wheat area since 2001 (6.5 million hectares) and it is expected a new record harvest surpassing 21 MMT. In this scena, bearish prices is not a good signal for farmers.